- Advertisement -
The Nigerian naira, on Wednesday, weakened to ₦707 to the dollar at the parallel section of the foreign exchange market.
The figure represents ₦42 or 7.45 percent depreciation compared to the ₦658 it traded last week — further losing value against the dollar.
Facts from Bureau De Change traders revealed that the free fall resulted from the lingering foreign exchange (FX) supply constraints.
With a profit margin of ₦17.00, the traders put the buying price at ₦690 and the selling price at ₦707.
A parallel market (black market) is characterised by noncompliant behaviour with an institutional set of rules.
The Central Bank of Nigeria (CBN) has often maintained that the parallel market is not the true reflection of the naira.
At the official market, the buying price stands at ₦415.14 while the selling price is 3416.14 a dollar.
The depreciation of the local currency has negatively affected businesses — most especially importers.
On Wednesday, the senate summoned Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), over inflation and naira devaluation.
Speaking on the floor of the national assembly, Biodun Olujimi, senator representing Ekiti south, said the CBN has “failed to defend the naira”.
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this.
Your kind donation will help our continuous research efforts.
-Advertisement-
-Want to get the news as it breaks?-
