Naira Drops to N2,000/1£ at Parallel Market

The Nigerian local currency is presently trading above 2,000 naira against the British Pound on the parallel market.

On Monday, Malam Ibrahim, a Bureau de Change operator at Wuse Zone 4, verified the exchange rates.

He said, Yes it is true, we are currently selling above N2,000 for the pounds and it is still about the heavy and consistent demand for these currencies.”

According to report, the new rate increased from N1,930 recorded on Saturday and is currently the lowest point in the historical performance of the naira.

Likewise, the naira experienced a depreciation against the dollar in the parallel forex market, with unofficial trading at N1,673 compared to N1,670/$ on Friday.

Despite the Central Bank of Nigeria’s implementation of multiple policies aimed at enhancing foreign exchange supply, these developments continue.

Among the recent policies was the Central Bank of Nigeria’s announcement, instructing international oil companies operating in Nigeria to cease immediately remitting 100 percent of their forex proceeds to their parent companies abroad.

Analysts in the market attribute the recent decline to a sustained increase in the demand for dollars observed since the beginning of January. The major factors contributing to this heightened demand include businesses actively replenishing goods or procuring raw materials, leading to an increased need for foreign exchange.