Naira plunges above 1300 per dollar at parallel market

Foreign exchange

Foreign exchange

This is as it closed trading on the Peer-to-Peer cryptocurrency window at N1,315.3/$1 on the day. Bureau de Change Operators confirmed the parallel market rates.

An Abuja Bureau de Change operator at Zone 4, Magaji Muhammed, said the rate increased to N1,300/$ on Tuesday.

He said, “Currently, we are selling for N1,300/$. We are witnessing more demand and that’s why.”

Another BDC operator, Abubakar Taura, however, noted that he could only sell for N1,280 per dollar. “I can sell for you at N1,280/$ and that is the highest I can go.”

On the Binance P2P platform, the naira closed at N1,315.3/$1. According to Chainalysis, a blockchain firm, Nigeria has one of the largest peer-to-peer exchange volumes in the cryptocurrency market. According to the details from the FMDQ OTC Securities Exchange, the naira closed trading at N878.57/$ on the Investor and Exporter Window of the foreign exchange market.

The naira’s continued fall is despite efforts by the government to boost liquidity in the official market. Dollar supply on the official Investor and Exporter window has fallen by 89.13 per cent in the last five days despite recent moves by the government to boost liquidity in the official market.

On Wednesday, January 10, 2023, foreign exchange turnover on the I&E Window was $242.60m, this crashed to $26.37m on Monday 15, 2023.

Despite the recent announcement, the Nigerian National Petroleum Company Limited has gotten $2.25bn of a $3.3bn oil-for-cash loan facility from the African Export-Import Bank to boost FX liquidity.

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