Naira declines to N409 to the dollar on black market –

Nigeria’s naira on Thursday declined to N409 to the dollar on the black market, compared to N402 the previous day, after the suspension of some Nigerian banks from forex trading which resulted to difficulty in obtaining the dollar.

The central bank suspended nine commercial banks from forex transactions on Tuesday for failing to remit money owed to the government – although UBA was readmitted afterwards.

Reacting to the development, bureaux de change operators explained that the currency crash was due to the impact of the suspension, thereby compounding the dollar shortages Nigeria has been struggling with due to the crash in the price of its oil.

“The suspension of some banks from transaction in the forex market has really increased pressure on the market,” Said Aminu Gwadabe, president of the bureaux de change association.

It will be recalled that since the incidence of the suspension, some bank executives have been meeting with central bank officials to resolve the forex transaction issue as investors continued to dump their shares.