Nigerian Naira Plunges To ₦485/$ In Parallel Market

Nigerian Naira Plunges To ₦485 $ In The Parallel Market
Nigerian Naira Plunges To ₦485/$ In Parallel Market
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The Nigerian currency – Naira weakened against the United States dollar yesterday at both the parallel market and the investors’ and exporters’ window.

The naira fell to ₦485 against the greenback at the black market from ₦484 on Thursday.

It weakened by 0.17 percent to 412/$1 at the I&E window, according to FMDQ Group.

Last weekend, the Central Bank of Nigeria removed its official exchange rate of N379/$1 from the home page of its website.

The CBN had in August last year devalued the naira to 379/$1 from 360/$1.

Read Also: Economic Crisis: Naira To Fall Further In January – CBN Report

Analysts at FBNQuest said the removal of the exchange rate might suggest that the unification of rates reportedly pledged to the International Monetary Fund ahead of the disbursement under the rapid financing instrument in April 2020 had materialised.

They noted that the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, was quoted in March as saying that the rate at the I&E window was the rate applied for the monthly distributions from the Federation Account Allocation Committee.

‘Since the rate of N379 applied to relatively few transactions, the weightier issue is the rate at which the CBN makes regular sales of fx to set groups of end-users such as the bureaux de change and that at the I&E window,’ the analysts said.

Meanwhile, the Association of Bureaux De Change Operators of Nigeria said on Friday that foreign exchange speculators would lose over N100bn in the next one month as the CBN sustained massive funding for BDC operators.

 

AFRICA DAILY NEWS, NEW YORK

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