The Naira crashed to N400 to the dollar and 510 to the pounds sterling on the parallel market Thurssday, lower than the N3390 to a dollar
from the previous day.
Naira Hits $/400
LAGOS PARALLEL MARKET RATES
Date USD GBP EUR
BUY / SELL BUY / SELL BUY / SELL
04/08/16- 390 / 400 500 / 510 415 / 425
A currency analyst, who preferred to remain anonymous, blamed the continuing slide of the nation’s currency on the parallel market to demand pressure.
According to him, demand for FX for most of the 41 items that had been excluded from the interbank market was still being met with dollars bought from the parallel market.
The source also attributed the development to the fact that banks that act as agents of international money transfer operators were yet to comply with a Central Bank of Nigeria (CBN) directive instructing them to sell foreign currency remittances to licensed bureau de change (BDC) operators.
On the interbank market, on the other hand, the naira strengthened to N311.03 to the dollar yesterday, higher than the N316.83 to a dollar from the previous day.
Despite non intervention by CBN, Nigeria’s FX interbank market was said to be awash with dollar liquidity following an intraday record of $49.158million worth of trade on Wednesday.
Consequently, FX interbank dealers traded the greenback at an average spot rate of N294.73/USD and a high of N318/USD in 34 deals. The local currency which opened to trade at N317/USD gained N6.5 to close at N310.50/USD, data at the FMDQ showed.
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