Naira sheds N5 against dollar, now N460/$ at Parallel Market

Nigeria’s currency, naira, dropped N5 against the dollar yesterday’s evening, October 26 at the parallel market, exchanging for N460 to a dollar s against the N455 it exchanged for the previous day.

This latest decline, National Daily gathered was due to the persistent forex liquidity in the money market.

The naira had been relatively stable at the parallel market following the directive of the Central Bank of Nigeria, CBN, asking international money transfer firms to sell dollars directly to bureau de change operators to boost liquidity and narrow the gulf with the official market.

The directive was initially effective, traders said, but its impact has been limited due to few dollars coming into Nigeria.

“What we get from Travelex is not sufficient,” one trader told Reuters, referring to demand in the market.”

International money transfer firm, Travelex, sells around $15,000 to 1,000 retail currency outlets weekly, but the amount is a fraction of what is required to cover demand from individuals and small businesses.

Meanwhile, at the interbank market, the spot rate of the naira closed at N306.78 to the dollar on Wednesday, buoyed by the apex bank interventions.