Mackenzie “Dollar To Naira Is Heading To N1,000” – Davido Cries Out
Nigerian music star, David Adeleke, professionally known as Davido has raised alarm over the upward movement of dollar to naira, says something needs to be done urgently to reverse it.
In a tweet via his verified Twitter page on Tuesday, the singer expressed sadness over the rise in Dollar to Naira.
“Dollar heading to 1k. Drastic action is needed,” he tweeted
Banks had on Monday lamented scarcity of forex and warned their customers of some delays in accessing it.
As at the time of compiling this report, dollar to naira exchanged is at N605 on Monday at the parallel market, heightening fears of a further devaluation of the nation’s currency.
Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.
The country’s external reserves fell by $313m in March, according to figures obtained from the Central Bank of Nigeria.
Politics is also a key factor, as experts see politicians mopping up dollars for election primaries this month.
The President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, during an interview with The PUNCH said that the situation was caused by several factors, including elections, loss of confidence, and demand/ supply.
“It is a market where demand and supply determine the price. Do not forget that election years are associated with foreign exchange volatility, coupled with supply squeeze.
“External reserves, inflation, cost of inputs, and the Russia-Ukraine war are also key issues, arguing that there was indeed a loss of confidence, saying that “once people see the exchange rate rising, the confidence will also fall.”
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