The Nigerian Naira experienced a significant depreciation in the parallel foreign exchange market, ending its previous trend of appreciation.
On Friday, the currency fell to ₦1,230 per dollar, a sharp decline of 17.14 percent from the rate of ₦1,050 per dollar recorded on April 17.
Currency traders in the parallel market, commonly known as bureau de change (BDC) operators, have adjusted their rates accordingly, with the buying rate set at ₦1,200 and the selling rate at ₦1,230, maintaining a profit margin of ₦30.
Aliyu, a BDC operator who spoke with TheCable, noted that the rapid depreciation could be attributed to a surge in demand. “The price of the dollar against the naira increased since yesterday, probably due to the fact that there has been an increased demand since yesterday,” he explained.
This downturn in the naira’s value interrupts its steady climb in the street market, which had been ongoing since March 20, when the exchange rate was notably higher at ₦1,500 per dollar.
The official foreign exchange window also saw the naira weaken, with the rate depreciating by 1.38 per cent to ₦1,169.99 against the dollar from ₦1,154.08 per dollar on April 18. Data from FMDQ Exchange, which manages official FX trading in Nigeria, revealed fluctuations within the day, with the naira hitting a high of ₦1,236 and dipping to a low of ₦1,021.
Amidst these market movements, the Central Bank of Nigeria (CBN) addressed rumors regarding its foreign exchange policies.
On April 18, the CBN took to X, a social media platform, to denounce a circulating circular that falsely claimed the bank had sold foreign exchange to BDC operators at a rate of ₦1,001 per dollar.
The bank labeled the circular as “fake” and advised the public to consult its official website for accurate information.
This decline in the naira’s value across both markets has stirred concerns among investors and the general public, as the nation grapples with ongoing economic challenges and market speculations.