Naira plummets to N860/$ at parallel market as dollar demand intensifies

The naira has continued its downward spiral, falling to N860 per dollar at the parallel market on Wednesday.

The figure represents a N35 or 4.2 percent depreciation compared to the N825 it traded yesterday.

With the depreciation, the gap between the official and parallel market exchange rates is widening once again.

The naira has consistently experienced fluctuations since the government unified the exchange rate windows.

At the investors and exporters (I&E) window, the local currency appreciated by 6.58 percent against the dollar to close at N742.9 on Tuesday, according to FMDQ OTC Securities Exchange — platform that oversees foreign-exchange trading in Nigeria.

Bureaux De Change (BDC) operators in Lagos and Ogun who spoke to TheCable on Wednesday said there is high demand for foreign currency in the parallel/street market.

The street traders, popularly known as ‘abokis’ put the buying price of the dollar at N840 and the selling price at N860, leaving a profit margin of N20.

When asked the reason for the decline of the naira against the dollar, Abubakar, a BDC operator in the Agbara area of Ogun state, said there has been increased demand for dollars amid a supply shortage in the market.

“Dollar is scarce now in the market. How much do you need? I can find it for you,” he told TheCable.