Naira Slides Further To N1,160/$1 In Parallel Market

The Nigerian Naira continues to weaken against the US dollar in the parallel market, reaching a new low of N1,160 per US dollar.

This marks a decline from the N1,100 exchange rate just the day before. The nation’s currency has faced relentless pressure since the recent announcement of the removal of forex restrictions on 43 items in the official market.

On the official Investors and Exporters’ (I&E) FX window, the Naira closed at N860.23 per US dollar, a drop from the N883.56 exchange rate of the previous day, according to data released by the Central Bank of Nigeria (CBN). Notably, the official I&E window reported a significant increase in daily volume turnover, reaching $97.47 million, a 39.4% surge compared to the previous day’s $69.88 million.

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This recent depreciation comes in the wake of the CBN’s decision to lift the eight-year ban on 43 items from accessing US dollars in the official market.

The initial list of restricted items, which aimed to conserve foreign exchange and promote domestic production, included commodities like rice, cement, and poultry products, among others. The central bank emphasized that market forces would now determine exchange rates based on a “Willing Buyer – Willing Seller” principle.

While the CBN aims to promote orderliness and professionalism in the FX market segment, the Naira’s continued depreciation on the parallel market raises concerns about the challenges faced by the nation’s currency amidst the changing forex landscape.