Naira depreciated against the U.S. dollar on the parallel market on Tuesday, according to data gleaned from abokiFX.com, a website that collates parallel market rates in Lagos.
The local unit exchanged for the greenback currency at N480, N3.0 or 0.63 per cent weaker than N477, the rate it traded at the previous session.
However, Naira strengthened against the U.S dollar at the Investors & Exporters (I&E) window of the foreign exchange market on Tuesday, according to data from the FMDQ Security Exchange where forex is officially traded .
It closed at N394.00 at the Tuesday trading session, which appreciated by N0.5 or 0.13 per cent from N394.50, the rate at which it closed at the previous session.
The appreciation took place as turnover rose by 170.9 per cent, with $108.34 million recorded as against the $39.99 million posted on Monday.
The domestic currency during the trading session experienced an intraday high of N390 and a low of N396.00 before closing at N394.00.
By implication, this further widens the spread between the unofficial market and the I&E window exchange rates to N86, which translates to a gap of 21.83 per cent.
The continuous increase in the spread between the rates at which naira is traded at both markets has been attributed to the significant decline in dollar inflow from crude sales, Nigeria’s main source of revenue, due to a crash in oil prices in April last year, and the coronavirus pandemic.
In order to bridge this gap, the Central Bank of Nigeria has initiated policies to regulate the market.
In December last year, the CBN had directed International Money Transfer Operators (IMTOs) and commercial banks in the country to pay beneficiaries of diaspora remittances only in dollar in order to deepen liquidity in the foreign exchange market and create transparency in the administration of diaspora remittances into Nigeria.
Also, in a memo last week Friday, the apex bank vowed to sanction IMTOs that are still flouting the directive.
The CBN’s official rate on Tuesday was still N379 per dollar.
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To advertise here . Call Willie +2347088095401...