The naira weakened further on Friday, reaching a new low of N1,590 in the parallel market due to a persistent scarcity of dollars.
This marks the second time the currency has depreciated to this level, with a similar occurrence recorded on February 16, 2024, based on data from street traders and online tracking platforms.
Compared to the previous day’s rate, the naira lost N5, as the dollar traded at N1,585 per dollar on Wednesday in the black market.
Bureau De Change (BDC) operators attributed the decline to limited access to foreign currency from commercial banks, despite the Central Bank of Nigeria’s (CBN) directive allowing BDCs to source foreign exchange from authorized dealers, with a weekly limit of $25,000.09.
In the official Nigerian Foreign Exchange Market (NFEM), the naira depreciated by 0.6 percent, or N9.13, on Thursday, with the dollar quoted at N1,547.81, compared to N1,538.68 the previous day, according to CBN data.
Authorized currency dealers reported the highest exchange rate at N1,560 per dollar on Thursday, slightly lower than the N1,550 recorded on Wednesday. The lowest rate for the day stood at N1,543.09, down from N1,532 in the previous session.
Against other major currencies, the naira traded at N2,020 per British pound, N1,690 per euro, and N1,150 per Canadian dollar.
Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), highlighted key challenges facing BDCs, including limited foreign currency supply, unfavorable exchange rates, fewer participating banks, narrow profit margins, and overall market uncertainty.
He noted that these factors have led to a decline in confidence in the supply framework, fueling currency substitution, speculative activities, and further weakening of the naira.
