The naira on Thursday plunged to a fresh record low against the dollar, the British pound sterling and Euro amid the lingering scarcity of foreign exchange in Nigeria.
According to reports, the value of the naira fell against the US currency on at both the parallel market and the Investors’ and Exporters’ foreign exchange window.
The local currency, which stood at 526/$1 on Tuesday, fell to 530/$1 at the parallel market on Thursday from 528/$1 on Wednesday. It also dipped to 720 against the pound at the parallel market from 717/£1 on Wednesday, while the euro rose to N620 from N616 on Wednesday.
According to FMDQ Group, at the I&E window, the naira weakened further to 411.67/$1 on Thursday from 411.50/$1 on Wednesday.
No less than 55 percent to 60 percent of Nigerian forex transactions are traded at this window, which is used by the CBN and most exporters and investors, according to Financial Derivatives Company Limited.
“It serves as not only a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market. Some of the exchange rate determinants are balance of payments, capital inflows, and trade balance,” the FDC said.
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