The Naira, Nigeria’s currency, fell to N930 to 1 US dollar on Thursday in the unofficial foreign exchange market, which is known as the parallel market.
According to reports, this drop happened because Nigerian banks could not keep up with the increasing demand for dollars, so buyers turned to the parallel market instead. The same thing happened in the official Investors and Exporters window, where the Naira lost 3.57% of its value compared to the dollar, trading at N771.59 to the dollar on Thursday instead of N744.97 on Wednesday.
It was gathered that the highest exchange rate during the day was N799.90 to the dollar before it settled at N771.59. On Wednesday, the Naira reached as low as N705 to the dollar. On Wednesday, $65.30 million was traded at the investors and exporters window.
The acting governor of the Central Bank of Nigeria, Folashodun Adebisi Shonubi, recently mentioned that they have been discussing reducing the foreign exchange backlog for some time, and they hope to achieve that goal in the next two weeks.
The dollar is currently at its highest value since mid-March, as concerns about the global economy have increased the demand for the dollar as a safe-haven currency. In the official market, authorized dealers and their clients traded the US currency at rates between N799.90/$1 and N705/$1.
