At the parallel market, Nigerian local currency is now trading for more than 2,000 naira versus the British pound. On Monday, Malam Ibrahim, a Bureau de Change operator in Wuse Zone 4, verified the prices.
Indeed, it is true that we are now selling pounds for more than N2,000, and the reason for this is the strong and steady demand for these currencies, he stated.
According to information received by our correspondent, the new rate is higher than the N1,930 reported on Saturday and is the lowest point in the naira’s historical performance.
In the parallel FX market, where the naira is unofficially trading at N1,673 from N1,670/$ on Friday, the naira also lost value in relation to the dollar.
These developments persist despite the Central Bank of Nigeria’s implementation of several policies aimed at bolstering the supply of foreign exchange.
One of the recent policies was the CBN’s announcement of halting international oil companies operating in Nigeria from immediately remitting 100 per cent of their forex proceeds to their parent companies abroad.
Market analysts attribute the recent decline to a consistent surge in demand for dollars that has been evident since the commencement of January. The primary contributors to this heightened demand include a substantial portion of the demand attributed to businesses actively seeking to restock goods or acquire raw materials, necessitating a higher demand for foreign exchange.
Details later…
