Naira Continues Free Fall, Weakens 6% To N658/$ At Parallel Market

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The Nigerian naira fell at the parallel market to N658 per dollar amid higher dollar demand. The figure represents a depreciation of N38 or 6.13 per cent from the N620 it traded last week. Bureaux De Change operators (BDCs) who spoke to news sources blamed the depreciation on ongoing foreign exchange (FX) supply constraints. Traders put the buying price of the dollar at N640 and the selling price at N658, leaving a profit margin of N18.

A street trader explained that the unpredictability of the market is the reason for the depreciation. “The thing is this; they don’t give it much gap because at any time it can fall. So, by the time you buy higher, and it’s falling, and if it falls, it’s not going to be going be one or two. It’s going to be 10, 15, or 20 naira drop at a go. So, more reason for the margin,” the trader said.

According to the Central Bank of Nigeria (CBN), the parallel market is not a true reflection of the country’s exchange rate.