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HomeBusiness NewsNaira Hits New Low As Demand Skyrockets On Parallel Market

Naira Hits New Low As Demand Skyrockets On Parallel Market

The naira traded at 1,430 against the dollar on the parallel market, sometimes known as the “black market,” when the foreign exchange (FX) market opened on Monday.

Compared to the N1,350 per dollar level that closed on Friday on the black market, this indicates a 5.49 percent loss versus the dollar.

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The depreciation of the naira was ascribed by traders to the growing demand for US dollars by end consumers who wish to travel for leisure, business, medical, or educational purposes.

The local currency finished flat at N1,400.40 per dollar on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), down 0.16 percent from N1,402.67 on Thursday.

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Stronger than the N1,445 finish the day before, the intraday high ended at N1,435 on Friday. Compared to N1,299.42 on Thursday, the intraday low decreased to N1,300.40 on Friday.

Between Thursday and Friday, the amount of money given by interested sellers and purchasers fell by 13.29% to $201.88 million from $232.84 million. On the parallel market, the Naira ended the day unchanged versus the dollar at N1,380.

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Afrinvest Securities Limited experts predicted that “we expect the Naira to be exchanged within the current band, barring any shocks.” [CONTINUE READING HERE]



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