In a recent development, the Nigerian naira saw a significant depreciation, hitting a low point at N950 per dollar within the parallel market.
This marks the lowest exchange rate level recorded since the Central Bank of Nigeria (CBN) introduced reforms to the foreign exchange (forex) market on June 14th.
Reports gathered from black market traders reveal that the parallel market exchange rate surged by N23, climbing to N950 per dollar from N927 per dollar just a day earlier, primarily due to a growing scarcity of the dollar in the face of surging demand.
Furthermore, the naira’s value also declined within the Investors and Exporters (I&E) window, reaching N780 per dollar.
The indicative exchange rate for this window rose by N21.88, up from N758.12 per dollar on the previous day.
Consequently, the disparity between the official and parallel market exchange rates widened to N170 per dollar, compared to N168.88 per dollar just a day earlier.
This decline in the naira’s value reflects a continuing trend since the CBN implemented reforms on June 14th.
These reforms included the removal of multiple exchange rates in the official market and the introduction of the ‘willing buyer willing seller’ model for determining exchange rates in the I&E window.
Despite these measures, sources in the forex market suggest that there has not been enough supply to meet the growing demand for dollars in the Nigerian economy.