The continued fall of the naira againat major currencies around the world has continued unabated as N998 now excahnge for 1000CFA in
Benin Republic, BUSINESSinsiderng can report.
A visit to Seme-Krake border by our correspondent yesterday showed that the two currencies that were once miles apart are now almost at par with each other.
Though, the official exchange rate of the West African CFA franc to naira was put at N0.73, the rate recently increased by 0.11% in the FX market and 0.66% in the black market.
A trader, Chukwu Nwaboshi, who goes to Cotonou, Benin Republic to buy footwear, bags and other second hand clothing revealed that most Bureau De Change operators would not change naira for CFA as from 4pm because the currency gains against the naira virtually every day.
BUSINESSinsiderng reports that the exchange rate between the naira and the US dollar opened at N413.76/$1 on 3rd November, 2021 and closed at N415.07/$1 on 2nd November. Showing a change -0.12.
According to data from FMDQ as at wednesday November 3rd 2021, forex turnover stands at $62.58 million.
However, stakeholders have raised the alarm that the naira is floating, tumbling freely with nothing to hold or support it.
They, however, argued that except the economy is rejuvenated for productivity, rather than the current consumptive regime, the naira might plummet to N1000/$1 or more.
An economic analyst, Chukwuemeka Iheonunekwu, Founder/Head of Probusiness Consults, recently expressed that anxiety. He said the free fall of the naira is a hydra-headed monster that requires diverse and intensive intervention. Nigerians are anxious, especially over the mounting hardship triggered by the naira collapse.
“Today, the economy has no structure. Agriculture is no longer reckoned with. The oil industry is grossly mismanaged. The naira has nothing to support it. All the interventions are ad-hoc and knee-jerk with no profound impact on the economy. The CBN alone cannot prop up the value of the naira by fiat,” a financial analyst, Luke Onyekakeyah said
Speaking further, Onyekakeyah said the Manufacturers Association of Nigeria (MAN), had lamented that some 272 firms have shut down due to the restriction placed on 41 items by the CBN.
The items were delisted from the official foreign exchange window, leaving the companies that make use of the items to source foreign exchange from the parallel market.
MAN also disclosed that the scarcity of forex has forced many small-scale businesses to close shop with as many as 180,000 job losses. To date, millions of people have been laid off their jobs. The catalogue of woes besieging the country as a result of the new forex regime is unending.
“Nigeria is an import dependent economy, which requires foreign exchange availability to function and a strategic return to agricultural and industrial productivity is the only solution to the naira mess. The naira should be supported with foreign exchange earned through export of industrial and agricultural goods,” he said.