Naira collapses further, trades N692/$ at parallel market

The Nigerian naira, on Tuesday, continued its free fall, collapsing to N692 at the parallel market against the US dollar, amid the lingering scarcity of the greenback.

The figure signifies a depreciation of N9 or 1.3 percent compared to the N683 it traded last week.

According to the traders, the persistent naira depreciation is due to increased demand by customers and the scarcity of the dollar.

At the official market, the naira also depreciated by 0.09 percent to close at N429.43/$ on Monday, according to information obtained from FMDQ OTC Securities Exchange — a platform that oversees official foreign exchange (FX) trading.

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To reduce the persistent FX pressures in the country, the World Bank and the International Monetary Fund (IMF) have advised the Central Bank of Nigeria (CBN) to unify exchange rates.

Nigeria is facing a forex exchange crisis, and this has affected the price of goods and services, including local and international flights.

Recently, the International Air Transportation Association (IATA) said foreign airlines’ funds being withheld in Nigeria increased from $450 million in May to $464 million in July.

Due to the inability to repatriate its funds, Emirates Airlines, the flag carrier of the United Arab Emirates (UAE), said it would halt flights to Nigeria from next month.