Naira Loses Steam, Slides To 555/Dollar In Parallel Market

64 Viewed Obiajulu Joel Nwolu 0 respond
Obiajulu Joel Nwolu

The naira lost steam at the parallel market on Monday, sliding to 555 per dollar.

The local currency had crashed to 540/dollar on Friday, after trading at 535/dollar on Thursday.

After tumbling to 575/dollar recently, the local currency began a gradual uptick in recent weeks peaking at 530/dollar last week.

Operators in the parallel market, who spoke to our correspondent on Monday, said the local currency was bought and sold at 550/dollar and 555/dollar respectively.

Read Also: Nigeria Can’t Get New Dollars When Exchange Rate is Artificially Low -Osinbajo

An operator in the black market attributed the fall to an increase in demand for the greenback.

Naira

Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo

At the Central Bank of Nigeria’s Investor & Exporter Window, the naira fell by 0.16 per cent to close at 415.07/dollar after reaching a new high of N445.75.

The CBN however maintained 411.63/dollar as the official rate on its website.

According to local currency traders, lack of adequate liquidity in the retail end of the market is responsible for the naira crash.

“It is a sign we need to meet the demand for dollar in the market, this constitutes a major conflict in activities in the market,” a local operator who chose to speak on condition of anonymity, said.

Source:Punch

This post was written by Obiajulu Joel Nwolu.

The views expressed here belong to the author and do not necessarily reflect our views and opinions.

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