Banking Finance

Naira slumps to 1,705/$ at parallel market

Photo caption: Forex exchange

 

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

A BDC operator in Lagos, Aliyu Sani, told The PUNCH that he 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 1700/$  and bought at 1,690/$.

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/$.

The daily turnover dipped to $177.10 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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