This is depressing news to the economy as the black market rate has plummeted for the naira, a reincarnation of the experience of the naira in March.
The exchange rate at the parallel market dipped to a new 3 year low on Thursday closing at N463/$1. However, on the officially recognized NAFEX Market Forex turnover rose by 110.6% on Thursday strengthening the exchange rate to N386.50/$1.
Parallel Market: At the black market where forex is traded unofficially, the naira depreciated by N2 to a dollar to close at N463 to a dollar on Thursday, as against the N461 to a dollar on Wednesday, the lowest naira value in about 3 years. The exchange rate at the beginning of the week was N461 to a dollar. The last time the exchange rate traded at N463 levels at the black market was the 10th of March 2017.
NAFEX: The naira appreciated against the dollar at the Investors and Exporters (I&E) window on Thursday, closing at N386.50 to a dollar, compared to the N386.75 that was reported on Wednesday, July 8, representing a 25 kobo gain. This is as traders continue to mull over CBN’s adjustment of the exchange rate at the SMIS window. The opening indicative rate was N386.96 to a dollar on Thursday. This represents a 36 kobo gain when compared to the N387.32 to a dollar that was recorded on Wednesday.