Naira crashes further, dollar sells for N420 as panic looms over global oil price

By Adetayo Opeyemi

Amidst the plummeting oil price which now sells at 35$ per barrel and the pandemic coronavirus which continues to spread at an alarming rate across the world, the Naira has continued to nosedive in value against the dollar.

On Thursday, the naira exchanged between N405 and N420 to a dollar in the Bureau De Change segment of the market.

The President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said the crude oil price which fell drastically in the international market to as low as $35 per barrel, causes widespread panic among BDC operators.

However, he admonishes that the speculations about recession are unnecessary and not economically substantiated. His claim, hasn’t doused fears though, with people still afraid of what is to come.

Another BDC operator who spoke with The Punch, said: “When we woke up on Monday, the exchange was still about N360, but all of a sudden, because of the fall in crude oil price, people were panicky. Today, we still sold for up to N420 but the price was fluctuating.”

The CBN has intervened, releasing a statement against the unscrupulous activities in the foreign exchange market, feeding rumours that the CBN is about to devalue the naira.

“These rumours are false, unwarranted and calculated to serve their dubious and selfish ends,” it said.

It added, “We have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers who are creating this panic, and the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage.”