Naira depreciates further and trades at 1,190/$

As the dollar becomes scarcer, the naira has continued to depreciate.

The naira started trading at $1,175/$ and ended the day at $1,190/$ in the parallel market.

The naira had previously traded at 1,100/$ on the black market two weeks prior.

According to data received from the FMDQ, it sold at 808.28/$ at the close of trading on Friday, down from 810.05/$ on Thursday. However, it increased somewhat on the Investor & Exporter FX window.

The dollar was rare, according to some Bureau de Change employees who talked with The PUNCH, as many did not have foreign currency to provide to customers.

Jubril Mutiu, a BDC operator, stated, “On Friday, the price was $1,175, but we don’t even have it. It is not accessible at the moment.

Adamu Afeez, a different BDC operator, stated, “We are seeking for those to sell to us, but at this time, we do not have the dollar to buy. Without one, we are unable to sell.

Ibrahim Abu, a different BDC operator, stated: “On Friday, we sold for $1,175/$ from the morning till the afternoon. It was already selling for $1,190 by two o’clock. It has changed over time. What the rate will be on Monday is unknown to me.

Following the CBN’s directive to the lending institutions to permit the free flow of the country’s exchange rate in June, the naira had continued to depreciate.

The naira traded at 471.67/$ on the FMDQ’s official market before to floating, and at 765/$ on the black market in June.

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According to Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, for Nigeria to have a stable, robust, and fertile exchange rate, BDCs must fully participate in the retail sector of the foreign currency market.

He claimed that everyone needed to work together to overcome the obstacles the country’s forex market and the weakening of the naira faced.

He claimed that because the BDCs had a licence to participate in the retail side of the forex market, they ought to be actively involved in finding long-term solutions to the continued exchange rate volatility.

The BDCs and the domestic economy are not benefited by the ongoing depreciation of the naira in official and black markets, according to Gwadabe. For greatest economic impact, actions should be done to reverse the tendency and boost the local currency.