The naira depreciated against the dollar on Friday, as it traded at N208 from the N191.50 it sold for on Monday, January 19. The new rate has made the naira to lose N16.50 within five days.
However, on the website of the Central Bank of Nigeria (CBN), the naira stood against the dollar at N167.50, while the pound sold for N253.20 and the euro, N193.89S The development has resulted into speculation in the market and caused ripple effects on other currencies.
A NAN correspondent, who visited some Bureau De Change and black market operators in Lagos, observed that they could not give rates to the pound sterling and the euro. Dealers who preferred anonymity said that there was scarcity of dollars in circulation.
They also alleged that the CBN had stopped selling forex to the Bureaux De Change, since last year. The dealers added that the recent review of trading positions for the forex trading positions of banks to 72 hours, also contributed to speculation in the system.
The effect, they added, was that the naira could depreciate further by next week. In November 2014, the CBN devalued the Naira to N168 to the dollar.
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