Naira falls to N890 naira per dollar 💵 in parallel Market

 

Dollar - Naira rates 

Nigeria's naira has once again experienced a significant decline, reaching a value of nearly N900/$ in the parallel market. Despite recent gains resulting from discussions between President Bola Ahmed Tinubu and the Central Bank of Nigeria (CBN), during which the currency briefly appreciated to N820 per dollar, this positive momentum has proven to be short-lived.

The naira's resurgence of troubles became apparent at the start of the week, with reports indicating that it was trading at around N890 to a dollar in Abuja on August 23, 2023. This unsettling trend has extended to Lagos, where speculative trading has resurfaced, exacerbating the situation. Traders in the Victoria Island area of Lagos have observed a consistent demand for dollars from both importers and travelers.

In this environment, the Bureaux De Change (BDC) operators are valuing the dollar at N885 for buying and N905 for selling, leaving a profit margin of N20. Muhammad, a currency trader in the market, highlighted that the demand for dollars remains high, contributing to the ongoing increase in the dollar's value.

Even the Exporters' and Investors' (I&E) window has not been immune to the currency fluctuations. At this window, the naira traded at N773.42/$1, representing a 0.4% decrease compared to the previous close of N770.72/$1 on Tuesday. This complex situation underscores the challenges that the Nigerian naira continues to face in maintaining stability and value in the foreign exchange market.