Naira Falls to N1,700 Per Dollar at Parallel Market

The Nigerian naira has depreciated to N1,700 per dollar at the parallel section of the foreign exchange (FX) market.

This represents a 1.49 percent decline from Thursday’s rate of N1,675.

The local currency’s value has not been this low since February 19, when it recorded a low of N1,730 per dollar.

Currency traders in Lagos quoted the buying rate at N1,680 per dollar and the selling rate at N1,700 per dollar, leaving a profit margin of N20.

In contrast, the naira appreciated by 2.24 percent at the official window, trading at N1,540.78 per dollar, up from N1,576.1 per dollar on Thursday. According to FMDQ Exchange, a dollar was sold as high as N1,691 and at a low rate of N1,530 during trading hours.

This depreciation streak began on Monday, with the naira falling to N1,665 per dollar from N1,663 on September 20. The local currency continued to decline, reaching N1,670 and N1,680 on Tuesday and Wednesday, respectively. However, it rebounded to N1,675 per dollar on Thursday.

At the official FX market, the naira also depreciated, falling to N1,562.66 on Monday from N1,541.52 on September 20. It further declined to N1,658.48 on Tuesday and N1,667.72 on Wednesday before appreciating to N1,576.1 on Thursday.

In January, the Central Bank of Nigeria (CBN) announced a comprehensive plan to improve liquidity in the Nigerian FX markets. The apex bank aimed to streamline and harmonize multiple exchange rates, promote transparency, and reduce arbitrage opportunities.

CBN Governor Olayemi Cardoso recently stated that multiple interest rate hikes have restored confidence in the naira. However, statistics are yet to clearly show this.