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Naira Hits New Low, Depreciates To N1,315/$ At Parallel Market

On Thursday, the naira, depreciated further yet again to N1,315 per dollar at the parallel section of the foreign exchange (FX) market.

The figure represents a depreciation of N90 or 7.35 percent compared to the N1225 it traded on Monday.

Bureau De Change operators (BDCs), in Lagos, put the buying price of the dollar at N1300 and the selling price at N1315 — resulting in a profit margin of N15.

“The dollar scarcity is still a problem,” a trader identified as Aliyu, told TheCable.

At the official market, the local currency appreciated by 5.51 percent, from N847.77/$ on Tuesday, to close at N801.10/$ on Wednesday.

This is according to data from FMDQ Securities Exchange — a platform that oversees official FX trading in Nigeria.

A total of $100.18 million was traded at the investors’ and exporters’ window (I&E) window — Nigeria’s official trading market.

Following the floating of the naira, the foreign exchange market has witnessed high levels of volatility — with the gap between the official and parallel markets further widening.

The Central Bank of Nigeria (CBN) lifted the ban on 43 items restricted from accessing forex to boost liquidity in the foreign exchange market.

CBN also said it will intervene “from time to time” to support the naira.

On Tuesday, the house of representatives summoned Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), over the decision to lift the forex ban on the 43 items.

To ease liquidity in the FX market, Wale Edun, minister of finance and coordinating minister of the economy, said Nigeria expects $10 billion in foreign currency inflows in the next few weeks.

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