President Bola Tinubu’s choice of floating Naira is inflicting more pains on businesses than imagined with over N930 exchanged for a dollar at the parallel market on Thursday.
The International Monetary Fund, IMF, said Tinubu’s loose fiscal and monetary policies created excess liquidity, making it difficult for the naira to stabilize against the dollar two months after authorities allowed the currency to trade freely.
Ari Aisen, a resident representative for the IMF in Nigeria told Bloomberg that Central Bank of Nigeria transfers to the government are increasing the naira in circulation, depressing interest rates, discouraging savings and deterring the dollar inflows that could boost naira stability.
On Thursday, the Peer-2-Peer (P2P) windows, the parallel market, and the Investors and Exporters (I&E) windows all saw a decline in the value of the Nigerian Naira against the US dollar.
Foreign exchange transactions have increased by 31.1 percent or $14.28 million to $60.26 million from the $45.98 million stated on Tuesday, the Naira decreased by N24.87 or 3.28 percent versus the US dollar during the trading session to quote at N782.38/$1.
Operators said said they buy at N920/$1 and then sell at N930/$1, leaving a profit margin of at least N10.
