Naira crashes to N490 to a $1

Nigerian Naira on Monday, December 19, crashed from N485 to N487 and now 490 per dollar at the parallel market.

The local currency which exchanged at N485 to a dollar on Friday, December 16, dropped five points this afternoon to N490 as dollar scarcity worsened ahead of the festive season.

Following this depreciation in the parallel market, it is expected that there will be sharp increase in prices of goods and services as Nigerians rush to the market to shop for festive season.

According to the currency traders, the demand for dollars in festive season was putting pressure on the Naira.

However, the currency remained stable against the Pounds and Euro at the market trading at 605 and 510 to the dollar.

It also remained flat at the inter-bank market, trading at N305 to a dollar.

The year 2016 has seen the local currency depreciate the most in its 43-year history, opening at 197 in January at the official market and 265 at the parallel market.