Nigeria’s currency – the Naira – further weakened in its exchange rate struggle against the US dollar at the parallel market on Monday, trading at an average of N760/$1 and representing 0.66% decline compared to the N755/$1 it traded at the unofficial FX market last Friday.
The Bureau De Change (BDC) dealers in the Federal Capital Territory (FCT) linked the local currency’s depreciation partly to a surge in demand for the US dollars by importers.
Also, the local currency depreciated against the Euro by 0.62% at an average exchange rate of N815/€1 as the FX trading opened for the week, compared to the N810/€1 it recorded on Friday.
However, the Naira slightly stabilized in its exchange rate against the British Pound Sterling as FX trading kicked off on Monday, trading at an average of N947/£1, compared to the N946/£1 it exchanged at last Friday.
According to data sourced from the cryptocurrency exchange market, the Naira suffered exchange rate loss at the cryptocurrency (Peer-to-Peer (P-2-P) Exchange market on Monday, depreciating by 0.11% to trade at a minimum of N764.92/$1. Last Friday, it exchanged at N764.10/$1.
The Central Bank of Nigeria (CBN) was in the past supporting the parallel FX market with foreign exchange supply as part of its efforts to achieve some stability in the local currency’s exchange rate against major foreign currencies in the past.
However, the apex bank suspended the monetary measure in March 2020 over FX round- tripping and other abuses by the BDC dealers and has not resumed supply to the market since then.
