Dollar on a steady nosedive

  • Dollar on a steady nosedive

The dollar continued its free fall as at yesterday on all segments of the economy, closing at N425 to the dollar yesterday.

At the Bureau De Change segment, the local currency was sold at N425 to a dollar and bought at N415, while the Pound Sterling was bought at N500 and sold at N510, the Euro was sold for N425 and bought for N420.

The injection of funds into the market was adjudged to be the reason for the decline of the super currency.
Most BDC operators agreed that the best way to check the rising cost of the dollar wa scontinous injection of liquid dollar.
An economic expert, Prof. Uche Uwaleke, admitted that a complete currency float was capable of unifying rates and reducing round tripping and speculative activities in the market.
He, however, said that such a measure could be suicidal for an import-dependent economy that derived much of its forex inflow from a single commodity.
He, therefore, recommended coordinated fiscal policies designed to encourage import substitution and enhance competitiveness of local production to help reverse the downward trend in the value of naira.