Thursday, 01 February 2024 04:55

Naira free fall continues as it crosses N1,500 to $1 at parallel market

Rate this item
(0 votes)

The naira, on Wednesday, crossed the N1,500 mark at the parallel section of the foreign exchange (FX) market.

The value of the naira fell to N1,530 against the dollar — an all-time low in the parallel market.

This is a 4.08 percent decline compared to the N1,470/$ reported the previous trading day. 

Currency traders, also known as Bureau De Change operators, quoted the buying price of the currency at N1,510 and the selling price at N1,530.

“One thing affecting the price of dollar is that there is a lot of demand,” an FX trader at the black market, known as Aliyu, said.

This expanded the gap between the black market and the official window, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), to N74.41 from N12.7.

On Tuesday, the official window rate had surpassed the parallel market price, however, on Wednesday, it was reversed as the naira gained at the close of trading in NAFEM.

The local currency appreciated by 1.82 percent in the official window to N1,455.59 — from N1,482.7 traded on Tuesday.

According to details on FMDQ Exchange — a platform where FX is officially traded — forex worth $72.33 million was transacted among market dealers.

The development comes after the senate committee on banking, insurance and other financial institutions summoned Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), over the “free fall of the naira”.

Speaking with journalists after a committee meeting on Wednesday, Adetokunbo Abiru, chairman of the panel, said the nation’s inflation rate has reached concerning levels and that Cardoso is scheduled to testify before the committee next Tuesday at 3 pm. 

The apex bank also released new measures for banks to manage foreign exchange (FX) risks and prevent losses.

 

The Cable

November 09, 2024

Manufacturers deploy solar power to counter ‘Band A’ charges

The Manufacturers Power Development Company Limited, a firm founded under the Manufacturers Association of Nigeria,…
November 07, 2024

Three reasons Trump triumphed

Liz Peek Donald Trump has just accomplished the most stunning political comeback in the history…
November 07, 2024

3 things emotionally intelligent people always do with their smartphones

Jenny Woo Picture this common scenario: Person #1 is in the middle of sharing something…
November 09, 2024

Sick man brought to bank on hospital bed to confirm his identity

A severely sick Chinese man was pushed to a local bank branch on a hospital…
November 11, 2024

Vandals hit three transmission towers on Lokoja-Abuja line, TCN says

The Transmission Company of Nigeria (TCN) says its 330-kilovolt (kV) in Lokoja – Gwagwalada transmission…
November 11, 2024

What to know after Day 991 of Russia-Ukraine war

WESTERN PERSPECTIVE Trump, Putin speak as Biden plans to lobby Trump to stick with Ukraine…
November 11, 2024

Hackers are targeting people who type these six words into their computer, smartphones

Computer users Googling whether Bengal cats are legal to own after finding themselves victims of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.