Naira Falls at the Parallel Market, Exchanges for N735/$1

 

Alt: = "Naira notes and dollar note"

The exchange rate between the naira and the US dollar on Thursday morning fell to a all time record low on the black market, trading at a minimum of N735/$1. The naira depreciated by 0.79%, when compared to the previous day. 

This rate was obtained from black market traders, who  attributed the fall to the continuous scarcity of forex and increased demand in the market. 

This recent fall in the exchange rate is following the move by the Central Bank to raise the interest rate to a 20-year high of 15.5%, representing 150 basis points increase from the 14% stated at the previous MPC meeting. 

Parallel Market operators sell dollars for as high as N735/$1 and buy between N725/$1 and N730/$1.  

The CBN had since 14 months stopped the sale of forex to Bureau De Change operators, and the naira has maintained a free fall since then, with the scarcity of forex. Before the apex bank discontinued the sale of foxe to the DDCs, the exchange rate the naira and the US dollar was N518/$1, and has depreciated by a margin of N212/$1 in a little over a year. 

Similarly, at the peer-to-peer cryptocurrency exchange window, the exchange rate plummeted to N735/$1 against the US dollar on Thursday morning from N733.4/$1 traded in the previous session. 

The Minister of Finance, Zainab Ahmed had earlier this month said naira will weaken further.

Official market rate 

The exchange rate at the official, Investors and Exporters window was N436.37/$1 at the end of trading session on Wednesday, 28th September 2022, which represents a  slight depreciation of 0.01% as against N436.33/$1 recorded on Tuesday, 27th September 2022.

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