Naira sinks to 1,705/$ at parallel market

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The naira depreciated at the unofficial market on Wednesday as it traded at 1,705/dollar, according to Bureau De Change operators in Lagos and Abuja.

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BDC operators in Lagos sold dollars for N1705, and bought at 1,695/$. In Abuja, the rate was lower at N1,700.

A currency trader, Suraju Ajao, said that he sold dollars for 1,700/$ and bought at 1,690/$.

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On the Nigerian Autonomous Forex Exchange Market domiciled on the FMDQ Securities, the naira closed trading at 1659.69/$, indicating a 0.04 per cent depreciation from 1658.97/$ that it traded on Tuesday.

On the official market, the naira traded at a high of 1,682/$ and a low of 1,562.97/$.

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TheNewsMatrics reports that the naira also traded at N2,123.96 against the British pound sterling at the official market and N2,220 per pound at the parallel market on Wednesday.

The daily turnover at the official market dipped to $177.10m from $217.86m on Tuesday.

The value of the naira reached a new low on Monday, closing at 1,700/dollar, a 0.29 per cent decline compared to N1,695 to the dollar, which it exchanged last week Friday.

The World Bank has recently listed the naira as one of the worst-performing currencies in Sub-Saharan Africa in 2024

As of August, the local depreciated by approximately 43 per cent year-to-date, ranking it among the weakest currencies alongside the Ethiopian birr and the South Sudanese pound.

The decline is attributed to surging demand for U.S. dollars in Nigeria’s parallel market, limited dollar inflows, and slow foreign exchange disbursements by the central bank.

 

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