Agency Report
Lagos – The Nigerian naira depreciated to ₦1,700 per U.S. dollar at the parallel section of the foreign exchange (FX) market on Friday.
At the end of trading hours, the naira depreciated by 1.49 percent compared to the ₦1,675/$ traded on Thursday.
The ₦1,700 per dollar is the lowest the naira has depreciated since February 19, when the naira recorded a low of ₦1,730/$.
According to The Cable news outlet, currency traders in Lagos quoted the buying rate of the local currency at ₦1,680/$ and the selling rate at ₦1,700/$ — leaving a profit margin of ₦20.
At the official window, the local currency appreciated by 2.24 percent from ₦1,576.1/$ on Thursday to trade at ₦1,540.78 on Friday.
According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as ₦1,691 and at a low rate of ₦1,530. during trading hours.
WEEK-LONG FLUCTUATIONS
At the parallel market on Monday, the naira depreciated to ₦1,665/$ from ₦1,663 on September 20.
Maintaining the depreciation streak, the local currency fell further to ₦1,670 and ₦1,680 on Tuesday and Wednesday, respectively.
However, the naira rebounded to ₦1,675 on Thursday.
At the official FX market, the local currency depreciated to ₦1,562.66 on Monday — from ₦1,541.52 on September 20.
Subsequently, the naira further depreciated to ₦1,658.48 on Tuesday and ₦1,667.72 on Wednesday, before appreciating to ₦1,576.1 on Thursday.
On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.
The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.
On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.