Business

See the amount Naira Falls to in Parallel Market — Lowest Point in Seven Months

Published by Tope Fakinlede on September 28th, 2024.

See the amount Naira Falls to in Parallel Market — Lowest Point in Seven Months

On Friday, the naira dropped to N1,700 per dollar in the parallel foreign exchange market, marking a 1.49% decline from Thursday’s rate of N1,675/$.

This is the lowest value the naira has reached since February 19, when it fell to N1,730/$.

In Lagos, currency traders reported a buying rate of N1,680/$ and a selling rate of N1,700/$, indicating a profit margin of N20.

Conversely, in the official market, the naira appreciated by 2.24%, rising from N1,576.1/$ on Thursday to N1,540.78 on Friday. Data from FMDQ Exchange revealed that during trading, the dollar was sold for as high as N1,691 and as low as N1,530.

Earlier in the week, the naira had depreciated from N1,663/$ on September 20 to N1,665/$ on Monday, followed by further drops to N1,670 and N1,680 on Tuesday and Wednesday, respectively. It managed a slight recovery to N1,675 on Thursday.

In the official market, the naira began the week at N1,541.52 but fell to N1,562.66 on Monday, then to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before rising to N1,576.1 on Thursday.

The Central Bank of Nigeria (CBN) announced on January 29 that it was implementing a comprehensive strategy aimed at enhancing liquidity in the FX markets over the short, medium, and long term. This plan seeks to unify exchange rates, increase transparency, and reduce arbitrage opportunities.

On September 25, CBN Governor Olayemi Cardoso stated that recent interest rate hikes have helped restore confidence in the naira.