The naira fell to a new all-time-low of N1,720/$ at the parallel market on Monday, according to the data on abokiFX.
This represents 3.61% decline from the N1,660/$1 it closed on Friday at the parallel market and a further fall from the N1,600/$1 it closed on Thursday.
The naira also fell to N2,125 against the British pound and N1,775 against the euro, the data on abokiFX showed.
Market experts attribute the depreciation to high demand for the green back amid scarcity.
Meanwhile, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), naira closed at N1,537/$1 on Friday, a decline from the N1,498/$1 it closed on Thursday at the official market.
Since the unification of the exchange rate by the Central Bank of Nigeria, under the administration of President Bola Tinubu, the naira has depreciated against the US dollar by 69.45% from N469.5/$1 as of June 8, 2023 before the FX markets unified.
On Friday, it was reported that the dollar sales by Deposit Money Banks and other entities at the NAFEM dropped by $252 million or 74% to $84.1 million from $331 million recorded on Thursday.
Forex turnover at the NAFEM last week:
- Monday: $116.11 million
- Tuesday: $381.92 million
- Wednesday: $117.87 million
- Thursday: $336.11million
- Friday: $84.1 million
Naira has continued to depreciate despite the $1.97 billion sale by banks after the Central Bank”s circular which mandated banks not to exceed a new threshold in their FX prudential guidelines.
Also the apex bank had on Thursday in a circular signed by its Director, Trade and Exchange Department, Hassan Mahmud, asked international oil companies not to repatriate all their revenue to their parent companies at once. In another circular, the CBN reviewed its guidelines to stop under-invoicing of exports and over-invoicing of imports.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
