Naira at lowest level in 43years, now N305/dollar

LAGOS—The financial sector appears to have entered a heightened pressure, yesterday, as both the foreign exchange and stock market sustained major negative trends. The Naira depreciated further to a 43-year low at N305 per dollar as scarcity of dollars intensified in the unofficial market. From an average of N287 per dollar on Tuesday, the parallel market exchange rate rose to an average of N305 per dollar across the country. Similarly, the new year stock market haemorrhage entered the eighth day yesterday, with a total N1.22 trillion losses to investors, giving a year-to-date decline of 12.36 per cent in market capitalisation. Naira-Dollar Naira-Dollar The market key index, the Nigerian Stock Exchange All Share Index, NSE ASI, declined year-to-date by same margin. The stock exchange, which opened this year at market capitalisation of N9.851 trillion began a free fall till yesterday, closing at N8.63 trillion while the NSE ASI which opened the year at 28,642.25 points closed yesterday at 25,103.05 points. The losses were heightened in the last 48 hours with a cumulative two-day loss of N430 billion following the escalated foreign exchange management crises which came with CBN’s announcement of its decision to cease sale of foreign exchange to BDCs on account of the precarious state the operators had forced the entire economy. Since Monday when the Central Bank of Nigeria (CBN) stopped weekly dollar sales to Bureaux De Change (BDCs), the Naira has been depreciating against the dollar.