Naira Hits Record Low of N1100/$1 at Parallel Market Amid Dollar Scarcity

The Nigerian currency, the naira, continued to lose value against the US dollar on Wednesday, reaching a new low of N1100/$1 at the parallel market. This represents a N35 drop from the previous rate of N1065/$1 reported on Tuesday.

According to currency traders known as Bureaux De Change (BDC) operators in the Ikeja area of Lagos, the naira’s depreciation was driven by the persistent scarcity of dollars in the street market. “Dollar is still scarce,” Aliyu, a BDC operator, told Newsflash Nigeria.

At the official market, the naira also weakened by 8.9 percent to close at N848.12/$1 on Tuesday, compared to N778.80/$1 on Monday. The data from FMDQ Securities Exchange, a platform that oversees foreign exchange (FX) trading in Nigeria, showed that the naira opened at N758.50 to the dollar on Wednesday, before closing at N848.12.

The dollar recorded an intra-day high of N981 and a low of N700 at the official window, where a total of $134.28 million in FX value was traded on Tuesday.

The naira’s decline at both markets comes amid the Central Bank of Nigeria (CBN)’s efforts to boost liquidity in the FX market by intervening “from time to time”. The CBN had also recently announced the lifting of the ban on 43 items previously restricted from accessing forex. The decisions were part of the apex bank’s strategy to restore stability in the country’s FX market.

However, the International Monetary Fund (IMF) said on October 14 that the CBN’s policies may require time to achieve the desired results. The IMF commended the CBN for the move but said it would continue to monitor the situation and provide technical assistance as needed.

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