Naira continues free fall, weakens 6% to N658/$ at parallel market

Nigerian naira, on Friday, fell at the parallel market to N658 per dollar amid higher dollar demand.

The figure represents a depreciation of N38 or 6.13 percent from the N620 it traded last week.

Bureaux De Change operators (BDCs) who spoke to TheCable 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.

At the official market, checks by TheCable showed that the buying price stood at N414.72 while the selling price stood at N415.72.

At the end of its monetary policy committee meeting on Tuesday, members urged CBN not to relent in its efforts to encourage foreign exchange inflow to the economy.