January 24, (THEWILL) – In a scenario that suggests stiff resistance against the measures aimed at halting the steep depreciation of the naira, the local currency maintained its free fall at the parallel market on Tuesday, January 23, as it plunged to N1,365 to the dollar.
The figure represents a N135 or 10.9 percent depreciation against the N1,230 to the dollar it traded at the parallel market on the previous day – January 22.
Findings from the street currency traders in Lagos on Tuesday showed that they put the buying price of the dollar at N1,355 and the selling price at N1,365 – a profit margin of N10 per dollar.
Two parallel market operators in Nigeria’s commercial city who spoke with THEWILL on phone, but on point of anonymity, said there has been a surge in the demand for the dollar since after the Christmas and New Year holiday.
“Many people who returned home for the holiday are beginning to return abroad, some with their families. Others are paying for their educational training expenses. All these put pressure on the naira and make the dollar costly,” one of the street traders said.
Asked if they were aware of the plans by the government to shore up the value of the naira and make it stable for a long time, one of the currency traders responded sarcastically, “Until we see the dollars, maybe we should find a way of exporting the waters of the Atlantic Ocean for the dollars to flow.”
At the official window – the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira traded N878.61 to a dollar on Tuesday, gaining N46.69, or a 5.04 percent against the previous day’s rate of N925.30 to a dollar.
Data from the website of the Nigerian forex aggregator, FMDQ Exchange, showed an indicative opening rate of N989.92 on Tuesday, with intraday spot high of N1,336.05, and a low of N701 before settling at the equilibrium of N878.61 at the close of Tuesday’s trading.
The FMDQ website further revealed a sharp decline in activities volume which dropped to $58.46 million on Tuesday, a huge negative difference of $14.87 million or 20.27 percent against the $73.33 million recorded on Monday.
Tuesday’s volume was also the lowest in about a week after the market recorded $26.37 million turnover on January 15, 2024.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
