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Naira Falls To New Record Low, Trades N1,045/$ At Parallel Market
Eko Hot Blog reports that the naira, on Wednesday, fell to a new all-time low at the parallel section of the market.
According to the TheCable, Bureaux De Change operators (BDCs), on Wednesday, quoted the naira at N1,045 to the greenback.
The figure represents a depreciation of N45 or 4.5 percent from the N1,000 it traded two weeks ago.
The street traders put the buying price of the dollar at N1,020 and the selling price at N1,045, leaving a N25 profit margin.
“The dollar is presently scarce,” Aliyu, a street trader in Lagos, said.
At the official side of the market — the investors’ and exporters’ window (I & E) — the local currency depreciated by 0.70 percent to close at N776.80 to the dollar on Wednesday.
According to details on FMDQ OTC Securities Exchange, a platform that oversees official FX trading in Nigeria, a total of $60.30 million FX transactions were made at the I&E window.
The World Bank recently declared the naira and the kwanza of Angola as the “worst performing currencies” in Africa so far in 2023.
The organisation said both currencies have depreciated by nearly 40 percent.
The poor performance of the naira against the dollar has been linked to liquidity problems.
It remains to be seen how the new CBN Governor, Michael Cardoso, and his management team plan to halt the free fall of the Naira against the Dollar.
Following his confirmation as 12th Governor of the Central Bank of Nigeria last month, Cardoso assured investors that the institution would do all within its statutory functions to tackle the foreign exchange shortage in the country.
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