Naira Experiences Sharp Decline Against The Dollar In Parallel Market

Naira Experiences Sharp Decline Against The Dollar In Parallel Market....KINDLY READ THE FULL STORY HERE▶

The Nigerian Naira witnessed a decline in its value against the US Dollar in the parallel segment of the foreign exchange market on Monday, sliding to N1,620/$. This marked a decrease of N20 or 1.25% from its rate on March 1, 2024, which was N1,600.

In contrast, the official window saw the Naira gaining 0.9%, trading at N1,534.19/$ compared to the previous rate of N1,548.25 per dollar on the same date.

Bureau de change (BDC) operators, or currency traders in Lagos, disclosed to TheCable that the buying rate of the dollar stood at N1,580, with a selling price of N1,620, resulting in a profit margin of N40.

The fluctuation in the foreign exchange market underscores the persistent volatility impacting the Nigerian currency. Data from FMDQ Securities, responsible for overseeing foreign exchange trading in Nigeria, indicated that the Naira experienced an intra-day trading high of N1,600.75 and a low of N1,425.35 on Monday.

These statistics highlight the dynamic nature of the forex market and the challenges faced by the Nigerian currency in stabilizing its value against the US Dollar.

In response to these market dynamics, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), commented on February 28, stating that the Naira is undervalued, largely attributed to distortions caused by actors in the foreign exchange market.

Cardoso remarked, “As and when we come up with these distortions, we will take them off and throw them away, and where there are distortions that come about as a result of bad behavior, we will ensure that those who do it will face the music as a deterrent to ensure that others in the future do not take that route.

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