Naira falls to N1,745/$ in parallel market

Naira falls to N1,745/$ in parallel market

By Fly Cable News

The exchange rate between the naira and dollar slid back to around N1,745/$1 on the parallel market a sharp reversal from the sub N1,600 levels recorded at the end of last week.

Checks by this newspaper on Wednesday show several rates above the N1,700/$1 mark suggesting that the gains seen last week may have been a “dead cat bounce” a market terminology for temporary gains.

Some P2P exchanges quoted N1,715/$1 while some IMTOs quoted N1,745. Stock trading apps like Bamboo and Trove quoted for N1,730/$1 and N1,736/$1 respectively.

Meanwhile, the exchange rate between the naira and dollar in the official market closed at around N1,525/$1 on Tuesday the strongest close since the EFEM was introduced.

Thus, the disparity between the official and black market rate has now widened to about N200 creating fear of a disconnect between the central bank managed official market and the parallel market where most retail trades occur.

Some BDC operators suggest the weakening is likely the handiwork of speculators who are holding strong despite the introduction of a more robust trading platform by the CBN.