Naira Further Depreciates At Parallel Market

The naira on Wednesday traded at N510 to the dollar at the parallel market, losing three points after closing at N507 on Tuesday.

The euro and the pound sterling exchanged at N535  and N625 respectively.

At the official interbank rate, the naira traded at N305.50 to the dollar.

Traders at the market attributed the current onslaught on the naira to activities of speculators and currency hoarders.

Despite steady rise in the nation’s foreign reserves, the Nigerian currency has continued to depreciate at the parallel market.

Acting President Yemi Osinbajo has blamed the rise in Dollar as against the Naira on corruption and vandalization of pipeline facilities in the Niger-Delta region.

He made this known in Port-Harcourt while scolding members of the opposition who criticize the federal government for the fall of the Naira against the Dollar.

Osinbajo said: “Some people have said ‘Ah! When you came the exchange rate was this now it is that.’ What accounts for exchange rates is simple. It is Dollars. If you don’t have Dollars, your exchange rate goes up. If you have dollars your exchange rate goes down.

“If you lose oil revenues through corruption and pipeline vandalism, your exchange rate goes up. It’s very simple. If Dollar is scarce, then the Naira to buy it will be more. That’s a simple thing.

“Exchange rate is not magic. It is just the availability of Dollars. Once we are able to earn the Dollars the exchange rate will go down. And we are hopeful that all of what we are trying to put in place, and with cooperation of all of us. We’ll be able to bring the exchange rate down.