The Nigerian Naira’s value has continued its downward trajectory against the United States dollar on Monday, causing distress among citizens. The parallel foreign exchange market hit a new all-time low for the Naira, which depreciated to N1,730/$.
The Economic and Financial Crimes Commission (EFCC) reportedly raided some Bureau De Change outlets in Abuja, arresting currency traders suspected of speculating against the Naira. This follows a 3.59% drop from N1,670/$ to N1,730/$ at the black market close of trade on Friday.
Currency dealers attribute the Naira’s depreciation to increased demand for dollars by speculators and individuals traveling for business, tourism, education, and health. Despite recent Central Bank of Nigeria interventions to boost forex supply, the Naira’s value remains under pressure.
At the black market, the buying price for the dollar was quoted at N1,700, with a selling price of N1,730, resulting in a N30 profit margin. Traders reported high demand for the dollar throughout the day.
In official trading, the Naira depreciated by 2.65% to N1,574.62 on Monday from N1,537.96/$ on Friday, with dollar sales decreasing to $66.43 million.
The widening gap between the official and parallel market rates, now at about N156 or 9.91%, raises concerns about round-tripping. The Naira also traded above N2,000 against the British Pound at the parallel market on Monday.
EFCC’s reported arrest of over 50 illegal Bureau De Change operators in Abuja’s Wuse Zone 4 due to the Naira’s fall underscores the severity of the situation. However, the EFCC’s official confirmation of these arrests was not available at the time of reporting.
