Naira falls to record low at peer-to-peer parallel market

Naira has fallen to a record low at the peer-to-peer (P2P) parallel market to trade for as high as N581.1 to a dollar.

At N581.4/$1 it represents a 0.8 percent decline compared to N576.6/$1 recorded as of the end of the previous week, hitting a record low. Meanwhile, the exchange rate at the black market currently trades flat at $571/$ , the same as recorded in the previous trading session.

On the other hand, a look at the official Investors and Exporters window shows that naira closed at N416.33/$1 on Monday, 17th January 2022, representing a marginal appreciation compared to N416.5/$1 recorded on Friday, last week.

In the previous week, a sum of $631.89 million exchanged hands at the official forex market, which is higher than the $442.59 million recorded in the previous week.

READ ALSO: Naira appreciates marginally against Dollar at official window

Meanwhile, Nigeria’s foreign reserve lost $62.59 million on Monday, 17th January 2022, representing a 0.15 percent decline to stand at $40.42 billion, increasing the year-to-date loss to $104.27 million.

P2P forex market, a short form for peer-to-peer, which basically means you are transacting in foreign currencies directly with a dealer from an online platform.

This process does not involve any middleman; hence you will bargain directly with the dealer, who might not be in Nigeria, you transfer Naira to them, and they send the dollar equivalent to you.

It is another form of the parallel market; however, the chances are that the rate could be slightly different from the BDCs (middlemen effect). It could be as a result of a barter too. Someone who needs naira could trade with another who needs dollars/pounds etc.