Naira Falls Massively At Parallel Market, See New Exchange Rate

Naira has fallen massively at the parallel market, See New Exchange Rate below.

 

NewsOnline Nigeria reports that the exchange rate between the naira and the dollar declined to N930/$1 on the parallel market.

 

The rate represents a 0.32% drop from N927 to the dollar, which traded in the previous session on Thursday. 

 

However, from the I&E window on the FMDQ website, the naira opened at N767.83/$1 and closed at N736.62/$1. 

 

Breakdown of data

• I&E FX window – The data from the I&E FX window showed that the Niara started the day at N767.83/$1, but it declined further and ended the day at N736.62 per dollar.
• Parallel market – The Naira declined 0.32% against the dollar on Friday, September 8th, 2023, closing at N930/$1 among traders, compared to N927/$1 on Thursday.
• The Naira also declined today against the British pound, falling by –0.85% from N1180/£1 on Thursday to N1190/£1 on Friday.
• The naira has made consistent declines in the parallel market since the week started, as demand for Fx continues to exceed limited supply.

 

Optics

The Central Bank has said that it is working with the commercial banks to clear the $10 billion foreign exchange backlog within the next 2 weeks. 

This was disclosed by the acting Governor of the CBN, Folashodun Shonubi, who broke the news at a forum on Tuesday in Lagos when he was confronted with questions on the lingering challenges in the foreign exchange market. 

Shonubi noted the backlogs would be cleared through different structures within the forex market, adding that banks, which control 75% of the forex transactions, will play a significant role in seeing that the backlog is cleared.