Naira drops to N570/$1 at parallel market | TheCable

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Naira drops to N570/$1 at parallel market via thecableng

A parallel market is characterised by noncompliant behaviour with an institutional set of rules.The Central Bank of Nigeria has consistently maintained that the parallel market represented less than one percent of foreign exchange transactions and should never be used to determine Nigeria’s naira/dollar exchange rate.

At the official market, the currency appreciated by 0.06 percent to open at N413.79 against N415/ a dollar on Wednesday, according to details on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria. Traders said the naira could come under pressure next week on the unofficial market where it trades more freely as outbound travel and businesses resume,“I expect a bit of demand next week, which could push naira down,” Reuters quoted a trader as saying.

Nigeria is battling dollar shortages as a result of low oil prices following disruptions linked to the COVID-19 pandemic.

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