Naira depreciates to N1,330/$ at parallel market

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The naira, on Tuesday, depreciated to N1,330/$ at the parallel section of the market.

It fell by 3.91 percent or N50 from the N1,280/$ rate recorded on Monday.

Currency traders in Lagos, also known as Bureau De Change operators (BDCs), quoted the buying rate of the greenback at N1300 and the selling price at N1,330 — leaving a profit margin of N30.

A BDC operator, who identified himself as Aliyu, said the dollar rate has been appreciating against the naira due to increased demand.

At the official section of the foreign exchange market, the local currency gained by 5.79 percent to N838.95 on Monday — from N890.54 last Friday.

FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, reported the naira recorded a high of N1,261 and a low of N701.

Meanwhile, on January 7, 2023, the Central Bank of Nigeria (CBN) disclosed that in three months, it redeemed outstanding forward liabilities of almost $2 billion.

The apex bank also said $61.64 million has been paid to foreign airlines through various deposit money banks (DMBs).

On September 22, 2023, Wale Edun, the finance minister and coordinating minister of the economy, said the overdue forward payments were behind the depreciation of the naira.