Naira sinks to N1,165/$ at parallel market

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The naira, on Thursday, depreciated to N1,165 per dollar at the parallel section of the foreign exchange (FX) market.

The figure represents a N5 or 0.43 percent depreciation compared to the N1,160 it traded last Tuesday.

Currency traders in Lagos, also known as Bureau De Change operators (BDCs), quoted the buying rate of the greenback at N1,155 and the selling price at N1,165 — leaving a profit margin of N10.

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On the official market side, the naira fell by 0.10 percent to close at N832.32 to a dollar on Thursday — from N831.47 at the close of trading on Wednesday.

According to data on FMDQ Securities Exchange, a platform that oversees official FX trading in Nigeria, the naira recorded an intra-day high of N1,137, and the lowest level for the day was N700.

On Wednesday, the Central Bank of Nigeria (CBN) directed all banks to accept old and redesigned naira notes indefinitely.

The apex bank issued the directive after the supreme court ruled that both notes should co-exist as legal tender.

In the fresh application, Lateef Fagbemi, the attorney-general of the federation (AGF), said due to the prevailing economic crisis, the CBN has not been able to print the volume of new notes that would enable it to phase out old currency notes before December 31.

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