– Naira falls to 385 per dollar

– Nigerians are desperate to buy dollar at any rate, it may cause further depreciation

The Nigerian naira has continued to fall in value against the American dollar on February 17, Wednesday.

Now it sells at N385 per dollar at the black market.

Meanwhile, the currency remained stable at the formal interbank foreign exchange market as the interbank rate is N199.34.

Therefore the gap between the official and unofficial rates enlarged to N185.66 per dollar from N127.53 last week. On February 12 naira was sold at N325 per dollar.

The currency also depreciated against the British Pounds to N505 per pounds in the black market.

A BDC operator said: “You know China had been on its one month annual holidays. But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays.”

“They had made 30% down payment to order the goods and they now have to pay the 70% balance otherwise they will lose the 30%. That is why they are desperate and ready to buy dollars at any rate. Meanwhile supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon.”

President Buhari stood firm in rejecting calls to devalue the currency of Nigeria, saying that he wouldn’t “kill the naira.”

The central bank of Africa’s largest economy has fixed the naira at 197-199 per dollar since March 2015 year to stem its slide amid a rout in oil prices.

Source: https://www.naij.com/734705-naira-depreciates-drastically-black-market-see-new-rate.html