Naira falls to new low, trades N1,045/$ at parallel market

The naira plummeted to a new all-time low at the parallel section of the market on Wednesday.

Survey carried out on street traders across the country by Vanguard revealed it stayed on the range of N1,035 to N1,040.

The figure represents a depreciation of N45 or 4.5 per cent from the N1,000 it traded two weeks ago.

The street traders put the buying price of the dollar at N1,025 and the selling price at N1,045, leaving a N25 profit margin.

One of the sources said, “The dollar is not readily available. It is scarce.”

At the official side of the market — the investors’ and exporters’ window (I & E) — the local currency depreciated by 0.70 per cent to close at N776.80 to the dollar on Wednesday.

According to details on FMDQ OTC Securities Exchange, a platform that oversees official FX trading in Nigeria, a total of $60.30 million FX transactions were made at the I&E window.

The poor performance of the naira against the dollar has been connected to liquidity problems.

Data obtained from the Central Bank of Nigeria (CBN) disclosed Nigeria’s foreign exchange reserves fell to $33.23 billion (two-year low) at the end of the third quarter of 2023.

The international reserves declined by $5.01 billion on a year-on-year basis relative to the $38.25 billion reported at the end of September 2022.

On a quarter-on-quarter basis, the foreign reserves depreciated by $881.84 million, having closed the second quarter (Q2) at $34.11 billion.

Gradually approaching N1100. No export only import import import... because we can't produce cost effectively neither can we produce enough.

CodeTemplar:
Gradually approaching N1100. No export only import import import... because we can't produce cost effectively neither can we produce enough.

Whose duty to provide the enabling environment? even the crude, we can't meet our OPEC quota. Agbado king bribing everyone with the few available dollar in the country just to cover his bad past.

Nigeria is finished. And I pity those who still think things will turn around