Naira Depreciates To ₦1,620/$ At Parallel Market

The Nigerian Naira saw a depreciation in value against the dollar at the parallel section of the foreign exchange market on Monday, sliding to ₦1,620/$, a decrease of N20 or 1.25 percent from its March 1, 2024, rate of ₦1,600.

In contrast, at the official window, the Naira recorded a gain of 0.9 percent, trading at ₦1,534.19/$ compared to ₦1,548.25 per dollar on the same date.

Currency traders in Lagos, known as bureau de change (BDC) operators, revealed to TheCable the buying rate of the dollar at ₦1,580 and the selling price at ₦1,620, resulting in a profit margin of N40.

This fluctuation in the foreign exchange market reflects the ongoing volatility affecting the Nigerian currency.

Data from FMDQ Securities, which oversees foreign exchange trading in Nigeria, showed the Naira reaching an intra-day trading high of ₦1,600.75 and a low of ₦1,425.35 on Monday.

These figures highlight the dynamic nature of the forex market and the challenges facing the Nigerian currency in stabilizing its value against the dollar.

Amidst these market movements, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), commented on February 28, the naira is undervalued largely due to distortions by perpetrators in the foreign exchange market.

Cardoso said, “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 behaviour, we will ensure that those who do it will face the music as a deterrent to ensure that others in future do not take that route.”

He said the perpetrators confuse the FX market.