Naira drops to N460 against dollar

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Naira has depreciated against the US dollar, as it dropped from N455/$1 to N460/$1 on Thursday afternoon.

Data from Everdon BDC stated that the Naira, which Nairametrics had reported on Wednesday that it closed at N455, dropped to N460 against the international legal tender.

What it means for Nigerians: A weaker naira makes imports more expensive and increases the cost of production for businesses, as many Nigerian businesses rely on imported raw materials which can result in cost-push inflation.

The naira also dropped against British pounds sterling as it stands at N548 to £ 1 from its previous close rate at N545 to £1, while the Euro selling at N480 to €1 from its previous close rate of N470 on Wednesday.

(READ MORE: Official rate: Naira could depreciate “to N440 by year end” – Analysts)

 

In addition, the central bank of Nigeria has now said it would resume sales of forex to BDC for onward sales to businesses and Nigerians looking to purchase for approved items.

READ ALSO: CBN reduces MPR to 12.50%, holds other metrics

Consequently, Aminu Gwadabe, president, Bureau De Change Operators of Nigeria (Association of Bureau De Change of Nigeria) explained recently that Bureau De change operators will resume fully as soon as restrictions placed on air travel and international airports are lifted.

He said the return of the operators will help stabilize the naira and reduce the impact of currency hoarders and speculators.

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“I, therefore, want our members and the General public not to engage on panic buying as anytime soon fingers might be burnt from such behaviors,” he added.