Categories: Economy

Naira Weakens To 990/$1 On Parallel Market As Dollar Demand Overwhelms Supply

  • Sodiq Yusuf

The naira came under intense pressure yesterday, leading to a significant depreciation as it fell to N990 to a dollar at the parallel market segment of the foreign exchange market, compared to the N950 to a dollar it traded the previous day.

On the other hand, on the official Investors and Exporters’ (I&E) FX Window, the nation currency appreciated marginally to N771/$1, compared to N777/$1 from the previous day.

The weakening of the naira to a record low took place on a day the Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Bello Shehu, disclosed that about N5.24 trillion accrued into the federation account between January and June 2023.

However, with the parallel market at N990/$1 and the official I&E window closing at N771, the gap between the official and parallel market has widened to N219

Some currency dealers in Lagos State, revealed that the demand for the greenback seen yesterday was unprecedented, just as they attributed the development to speculative demand.

READ: CBN Opens Online Platform For Microfinance Bank Licence Applications

Mr. Ibrahim Salisu, while speaking in an interview with newsmen, said: “Today started off normal but around 11:30 am till evening, we don’t know what may be responsible but dollar became scarce. I’m unable to find even $2000 as we speak.”

Another parallel market operator in Lagos, who pleaded to remain anonymous, also confirmed the speculative demand observed yesterday.

On the I&E window yesterday, the total turnover was $64.36 million compared to the daily volume of $71.01 million exchanged the previous day, as the supply of the greenback continued to wane.

Also, the highest spot rate of the day was pegged at N799.9/$1 while its lowest spot was exchanged at N475/$1.

 

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