Dollar Surge Fails to Lift Naira as it Sinks Further in Official and Parallel Markets

The naira continued to lose value against the dollar in the official and parallel markets on Monday, despite a significant increase in the volume of dollars traded in the Investor & Exporter forex window.

According to data from FMDQ OTC Securities Exchange, the dollar turnover in the I&E window rose by 46.69 per cent to $123.25m on Monday, up from 84.02m on Friday.

However, this did not prevent the naira from depreciating by 1.96percent to close at N795.41/ on Monday, compared with N780.14/on Friday.

The naira also reached an intraday high of N1099/ and a low of N701/$ during the trading session.

In the parallel market, the naira fared worse, falling by 4.55 per cent to N1,150/ from N1,100/ on Friday, according to some Bureau de Change operators. They said they were buying the dollar at N1,110/ and selling at N1,150/, while the buying rate for those who wanted to sell was N1,170/$.

The naira has been under pressure since the Central Bank of Nigeria (CBN) allowed the exchange rate to float freely in the I&E window in June, in a bid to improve liquidity and transparency in the forex market. Before the policy shift, the naira traded at N471.67/$ in the I&E window and N765

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