Naira continues depreciation streak, tumbles to N1,900/$ at parallel market

The Nigerian naira, on Tuesday, depreciated further to N1,900 to the dollar at the parallel section of the foreign exchange (FX) market.

The naira declined by 9.83 percent from the N1,730 recorded on Monday.

Currency traders, also known as Bureau de Change (BDC) operators, quoted the buying rate at N1,850 and the selling rate at N1,900 — leaving a profit margin of N50.

“We don’t understand the rate and it will get more expensive tomorrow,” a trader known as Aliyu said.

Meanwhile, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the local currency recovered to N1,551.24 per dollar on Tuesday.

The rate represents a 2.9 percent appreciation from the N1,598.54 traded on Monday.

According to data from the FMDQ Securities Exchange — a platform that oversees FX trading in Nigeria — the local currency hit an intra-day high of N1,701 and a low of N1,100.

Amid ongoing efforts to restore market stability and boost liquidity, the Central Bank of Nigeria (CBN) and the Office of the National Security Adviser (ONSA), entered a partnership to investigate and penalise those involved in illicit activities within the FX market.

The partnership, according to ONSA, will involve a coordinated effort with key law enforcement agencies, including the Nigeria police force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS) and the Nigeria Financial Intelligence Unit (NFIU).

On February 20, 2024, President Bola Tinubu said his administration is making efforts to raise at least $10 billion to increase liquidity, stabilise the naira and grow the economy.