The naira, on Monday, closed at N774.78 per US dollar at the investors and exporters (I&E) window.
The figure signifies a depreciation of N31.71 or 4.27 percent compared to the N743.07 it traded on Friday, according to data obtained from FMDQ Securities Exchange, a platform that oversees foreign exchange (FX) trading in Nigeria.
The I&E FX window is the market trading segment for investors, exporters and end-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances. It is the country’s official FX market.
Since the government unified the exchange rate windows, the naira has consistently experienced fluctuations at the official window.
At the parallel/ street market where the dollar is traded unofficially, Bureaux De Change (BDC) operators who spoke to TheCable in the Victoria Island area of Lagos said there was high demand for foreign currency.
The traders put the buying price of the dollar at N890 and the selling price at N897, leaving a profit margin of N7.
“Dollar keeps going up. Only God knows why,” trader simply identified as Musa told our correspondent.
With the depreciation, the gap between the official and parallel market exchange rates is widening once again.
PricewaterhouseCoopers (PwC), the professional services firm, recently projected higher inflation and continued volatility in the FX market in August.
The firm warned that petrol subsidy removal and the adoption of a managed float exchange rate system is expected to mount additional pressure on inflation.