Naira Sees Second Big Fall in Months At Parallel Market

By Abdulkareem Mojeed

The decline comes days after the Central Bank of Nigeria (CBN) announced a new incentive for diaspora remittances.

Naira on Tuesday fell significantly at the parallel market below the 480th mark to the dollar, the first time in nearly four months.

The decline comes days after the Central Bank of Nigeria (CBN) announced a new incentive for diaspora remittances.

On March 5, the CBN had directed all Deposit Money Banks and International Money Transfer Operators to henceforth pay recipients of diaspora remittances N5 for every $1 received as inflow.

At the unofficial market, data from abokiFX.com showed the domestic currency exchanged for the greenback at N484, a N2.0 or 0.42 depreciation from N482 it traded on Monday.

The margin is significant as naira had been at or below 480 for months, after touching an all-time low at the unofficial market on November 20 last year, when it traded at the black market for N500.

I&E Too

The currency also weakened at the Investors & Exporters (I&E) window of the foreign exchange market on Tuesday, data from the FMDQ Security Exchange where forex is officially traded showed.

Naira closed at N412.00 at the I&E window. This represents a N0.12 or 0.03 per cent depreciation from N411.88, the rate at which it closed on Monday.

Tuesday's margin leaves a 17.48 per cent spread between the unofficial market and the I&E window.

The CBN's official rate on Tuesday was still N379 per dollar.

This article originally appeared on Premium Times

Photo: Wikimedia