The dollar has maintained its dominance over the naira after appreciating by 1.34 per cent on December 15, 2022, reports from the Bureau de Change have shown.
The exchange rate between the currencies of Nigeria and the United States rose to N755 per dollar on Thursday, up from the previous day’s N745/$1 in the parallel market.
Following trading on Thursday, Prime Business Africa understands that few dollars are being chased by many naira notes due as the phase out deadline for the old naira currency nears.
Last month, the President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, had warned that the naira will suffer from the recent currency policies of the Godwin Emefiele-led Central Bank of Nigeria (CBN).
Recall that the central Bank had announced a cash withdrawal policy which instruct banks to reduce withdrawal limit, part of an effort to phase old naira before January 31, 2022, and reduce currency in circulation.
“One of the unintended consequences of the cash withdrawal limit is the return of public rush to substitute their naira to greenback which is putting pressure on the exchange rate of the local currency to Dollar before the effective date.”
Also, in the Investors and Exporters window of the official foreign exchange market, the naira depreciated by -0.9 per cent, representing N4.26 increase in dollar’s value.
In the official market, recognised by the central bank, the dollar exchanged for the naira at N450.58/$1 on Thursday, rising from N446.32 to a dollar reported during the previous trading session.
The dip in the value of the naira follows the inability of Nigerian banks to dispense the newly redesigned notes, as it was gathered that the new currency in the lenders’ possession is insufficient for the number of withdrawals recorded in the banking halls and Auto Teller Machines (ATM).
The banks are expected to stop accepting the old naira notes from January 31, 2022, however, they are still dispensing the notes to their customers.