Naira hits record low, falls to N1,315/$ in parallel market

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Naira gains ground, trades at N1,025/$ in parallel market
Naira gains ground, trades at N1,025/$ in parallel market

The Nigerian naira continued to depreciate, reaching N1,315 per dollar in the parallel segment of the foreign exchange (FX) market on Thursday.

This marks a significant depreciation of N90 or 7.35 percent compared to its rate of N1,225 on the previous Monday.

Bureau De Change operators (BDCs) in Lagos set the buying price for the dollar at N1,300 and the selling price at N1,315, resulting in a profit margin of N15.

Currency traders, including one named Aliyu, expressed concerns over the ongoing scarcity of the dollar, contributing to the naira’s depreciation.

On the official market, the naira appreciated by 5.51 percent, rising from N847.77/$ on Tuesday to close at N801.10/$ on Wednesday.

This data was reported by FMDQ Securities Exchange, which oversees official FX trading in Nigeria.

The investors’ and exporters’ window (I&E), which is Nigeria’s official trading market, recorded a total trading volume of $100.18 million.

Since the floating of the naira, the foreign exchange market has experienced increased volatility, with the gap between the official and parallel markets continuing to widen.

In an effort to enhance liquidity in the FX market, the Central Bank of Nigeria (CBN) lifted the ban on 43 items that were previously restricted from accessing forex.

The CBN also announced its intention to intervene periodically to support the naira.

Recently, the House of Representatives summoned Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), to address the decision to lift the forex ban on the 43 items.

To alleviate liquidity concerns in the FX market, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that Nigeria expects foreign currency inflows of $10 billion in the coming weeks.