Naira plummets to historic low at N1,000/$ in parallel market

Naira weakens despite three-month low for U.S. dollar index
Naira weakens despite three-month low for U.S. dollar index

The Nigerian naira has reached a historic low against the United States dollar in the parallel market, with currency traders in Lagos quoting an exchange rate of N1,000 to the greenback on the streets.

Bureaux De Change operators (BDCs) in Lagos set the buying price for the dollar at N990, with a selling price of N1,000, yielding a profit margin of N10.

This marks a depreciation of N7 or 0.7 percent compared to the N993/$ rate observed on the previous day.

N1,000/$ exchange rate

BDC operators across various locations, such as Atiku in Ishaga and Shehu in Ogba, have adopted the N1,000 exchange rate, emphasizing that the dollar has become scarcer and more expensive.

Some operators even express willingness to buy dollars at N990/$.

In the official market, the Investors’ and Exporters’ window (I & E) saw the naira depreciate by 4.78 percent, closing at N773.25 to the dollar.

This depreciation was recorded on the previous Monday.

Data from the FMDQ OTC Securities Exchange, responsible for overseeing official FX trading in Nigeria, reveals a total of $64.14 million in FX transactions conducted at the I&E window.

The naira’s previous lowest point was observed on August 10th when it traded at N950 to the dollar.