OOPS! Naira trading at 316, 350 and 382 to the dollar

The naira is depreciating on all fronts to trade as low as 382 to the dollar in Nigeria’s commercial capital, Lagos, on Monday.

The naira, which traded at 378 to the dollar on Friday, at the parallel market, retreated further to 382 against the dollar as at 1pm on Monday.

Interbank market trading opened at 318 to the dollar on Monday, to peak at 324, appreciating to 310.50 about noon. It continued trading at 316 to the dollar at about 2pm.

Deposit Money Banks (DMBs) are charging between 340 and 360 against the greenback on debit cards for international transactions.

Stanbic IBTC, one of the leading foreign exchange providers in Nigeria, says it is charging 350 to the dollar, 469.67 to the British pound, and 398.13 to the Euro.

The naira has depreciated by over 40 percent in 2016, making it one of the worst performing currencies in the world.

Muhammad Sanusi II, emir of Kano and former central bank governor, has said if the apex bank properly implements its policy document on floating the naira, the local currency may need to fall below 300 before it firms.

“There is a fantastic document by the central bank on the flexible exchange rate. We need to implement that document properly,” he had said.

“You have to let the market decide where the naira is going to be, to start with, before inflows come in and then when the inflows are in, you have an appreciation of the naira.

“So you have to live with a devaluation to N300/$1 plus and then it will firm up to N270/$ or N280/$1 or whatever. But so long as you target a rate of N280/$1, you are just moving the peg”.