Parallel Market Sees Naira Drop to N1,510/$, While Official Window Records Appreciation

The naira depreciated to N1,510 per dollar in the parallel section of the foreign exchange (FX) market on Monday, marking a 1.34 percent decline from the N1,490/$ rate observed on May 31.

Currency traders, commonly known as bureau de change (BDC) operators, reported buying the dollar at N1,490 and selling it at N1,510, resulting in a profit margin of N20.

Conversely, the official window saw the naira appreciate by 0.66 percent, improving from N1,485.99/$ on May 31 to N1,476.12/$ on Monday. The FMDQ Exchange, which oversees official FX trading in Nigeria, indicated that the dollar traded between N1,250 and N1,500 during the day. The daily FX market turnover was reported at $121.87 million.

In other news, the International Air Transport Association (IATA) announced on June 2 that 98 percent of the trapped airlines’ funds in Nigeria had been cleared. Willie Walsh, IATA’s director-general, noted that only $19 million remained to be cleared by the Central Bank of Nigeria (CBN).

“We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation,” Walsh stated, commending the Nigerian government and the CBN for their efforts in addressing the issue.