(NIGERIA) – In the parallel market, the Nigerian naira experienced a significant depreciation, reaching a new low of N950 per US dollar.
This drop, the lowest since the Central Bank of Nigeria (CBN) introduced forex market reforms on June 14th, was reported by traders in the black market.
The rate in the parallel market increased by N23 compared to N927 per dollar the previous day due to a growing scarcity of the dollar alongside high demand.
Naira weakens to N780/$ in I&E window
Likewise, in the Investors and Exporters (I&E) window, the naira depreciated to N780 per dollar, with the indicative exchange rate for the window rising by N21.88 from N758.12 per dollar on the previous day.
The disparity between the official and parallel market exchange rates expanded to N170 per dollar from N168.88 per dollar.
Since the CBN implemented reforms on June 14th, which included eliminating multiple exchange rates in the official market and adopting a ‘willing buyer willing seller’ model for exchange rate determination in the I&E window, the naira has been on a consistent decline in the forex market.
Sources in the forex market indicate that these CBN measures have not yet generated enough supply to meet the growing demand for dollars in the economy.
