By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)- The Nigerian local currency the naira on Tuesday crashed against the U.S dollar and traded N191.10 reported Monday to N210 at the parallel market (black market).

This crash in the exchange rate differential is further worsened by the new directive by the Central Bank of Nigeria (CBN) to stop dollar sales to BDCs.

This coming on the heels of a newspaper report that Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) scheduled an emergency meeting with operators in the foreign exchange market on Tuesday.

Last Friday the CBN reviewed upward the weekly forex cash sales to BDCs from $15,000.00 to $30,000.00 per BDC and this will take effect from tomorrow Wednesday January 28, 2015.  

“While, the CBN will sell to BDCs weekly at the prevailing interbank rate, the BDCs are expected to sell to the public at not more than 3.5 percent above the CBN selling rate,” the CBN said.

On November 25, 2014, the Nigeria’s central bank devalued the naira by eight percent (8%) to N168 to a US dollar. it also raised interest rates to 13 percent by 100 basis points in a view to check losses to its foreign reserves from defending the currency against weaker oil prices.