The Nigerian Naira suffered a major setback on Thursday, crashing tremendously against the dollar, following the federal government's decision to liberalize sales of petrol.
Following the President Buhari-led federal government’s decision to remove fuel subsidy and liberalise sales of petrol the Nigerian naira suffered a setback, crashing to N345 against the dollar on Thursday.
The nation's currency also exchanged at 475 to the British pounds less than 24 hours after the announcement was made by the Minister of State for Petroleum, Dr. Ibe Kachikwu,
A bureau de change operator in Lagos where the dollar closed at N345 to the naira, told a correspondent that many sellers were stranded.
"If you want to buy, we don’t have to sell, but if you want to sell, we can discuss.
"We sold for 345 today, but many of us don’t have again to sell. If you want to buy now, you would not see to buy," Isiaka Mohammed, a trader, told TheCable in Lagos.
While in Abuja, an operator said trading at the parallel market closed at the rate of 345 to the dollar, as against 322 to the dollar early Wednesday when the new pump price had not been introduced. "We don’t understand how this is going, we closed market at N340 to the dollar, while pounds sold at 475," he said.
The situation was the same in Kano. An operator in the state, said the dollar was selling for 325 in the afternoon, but is currently trading around 330.
With prevailing realities, the nation may be forced to devalue the naira, as round tripping is likely to persist in the days ahead.
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