Naira tumbles to new all-time low at parallel market

The parallel section of the foreign exchange market recorded a new all-time low on Monday after the naira depreciated to N1,730 per dollar.

The naira fell by 8.13 percent from N1,600/$ recorded on February 16, 2024.

Currency traders at the street market quoted the buying price of the dollar at N1,700 and the selling price at N1,730 — leaving a profit margin of N30.

“Customers are demanding for the dollars so much and it is affecting the market,” a black market trader known as Aliyu said.

At the official window, the naira depreciated by 2.65 percent to N1,537.96/$ on February 16 — from N1,498.25 per dollar on February 15.

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According to data from FMDQ Securities, a platform that oversees foreign exchange trading in Nigeria, the local currency hit an intra-day trading high of N1,631 and a low of N1,000.

Meanwhile, the Central Bank of Nigeria (CBN), in furtherance of its efforts to stabilise the naira, made certain policy changes in the past week.

On February 15, 2024, the CBN announced it had placed limits on the transfer of proceeds from crude exports by international oil companies (IOCs) to offshore parent company accounts.

CBN also halted cash payments of personal travel allowance (PTA) and business travel allowance (BTA) — directing banks to adopt electronic transfers.