After two months of stability, the naira, yesterday, depreciated by N14 in the parallel market, in response to demand pressure occasioned by the deregulation of petroleum sector announced by the Federal Government, Wednesday.
This development, according to bureau de change operators, triggered a demand for dollars in the parallel market, leading to sharp depreciation of the naira.
Hence, the parallel market exchange rate, which had been stable at N320 per dollar since end of February, rose to N334 per dollar at the close of business, yesterday.
Confirming this development to newsmen President, Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwada, said the market today experienced increased demand due to the announcement that petrol importers should source dollars from secondary sources. The market has been stable all this while due to drastic reduction in import activities hence demand for dollars by importers reduced sharply.
Those who had bought dollars when the rate was high and used it to import are having difficulty selling their goods, hence those who are still importing have reduced. But the announcement, yesterday, has changed the whole thing. More demand for petrol importation is expected in the market, meanwhile, there is no supply of dollar.
Some people with dollar, especially those who bought when the exchange rate was high, feel the rate is too low for them to sell, hence they are withholding their dollars, waiting for the rate to go higher.
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