Nigeria’s naira to dollar exchange rate weakened at the parallel or black market on Monday, March 22, 2021, further widening the gap with the NAFEX market.
At the parallel market/black market, the naira to dollar exchange rate depreciated and closed at N486 to one dollar compared to N485 to one dollar rate on Friday last week.
This is coming more than 10 days after the Central Bank of Nigeria began the Naira 4 Dollar scheme to shore up remittances by incentivize senders and recipients of international money transfer.
The closing rate indicated that naira depreciated in value by N1 as against N485 the previous day..
Naira traded for N412 at the Investors and Exporters window before closing at N410.13 on Friday.
This is a slight depreciation by N0.13 when compared to a rate of N410 per dollar in the previous day.
The closing rate indicated that the exchange rate differential between NAFEX market and parallel market is N75.86.
A forex trader at AZA Finance, Oghenefejiro Eduviere, had predicted that naira will to slide further toward 500 this week, as market rates react negatively to the Naira 4 Dollar Scheme.
He said at the NAFEX front, the Naira could weaken towards 425 levels in a bid to converge towards the parallel market.
