Apprehension as Naira Crashes to N700/£1 at Parallel Market
By Adedapo Adesanya
The foreign exchange (Forex) market in Nigeria was thrown into a panic mood on Monday when the value of the Naira significantly depreciated against the Pound Sterling at the parallel market.
Business Post reports that the Naira lost N10 against the British currency at the unregulated segment of the FX market to trade at N700/£1 in contrast to N690/£1 it traded at the previous session.
The crashing of the domestic currency against the Pound Sterling came after the Central Bank of Nigeria (CBN) further devalued the Naira, confirming fears nursed by traders concerning FX liquidity.
At the same black market yesterday, the Nigerian Naira lost N1 against the Euro, selling at N596/€1 compared with N595/€1 of the previous session.
However, the local currency maintained its stability against the US Dollar at the parallel market on Monday, closing flat at N495/$1, though there are speculations it might hit N500/$1 in the coming days.
At the Investors and Exporters’ (I&E) window, the Naira also traded flat against the greenback yesterday, selling at N412/$1, the same rate it traded last Friday.
This stability was sustained as a result of a decline in the demand for FX at the market window as data showed that the turnover for the day stood at $125.44 million, $30.62 million or 19.6 per cent lower than the previous session’s $156.06 million.
At the interbank segment of the market, the official exchange rate of the Naira to the Dollar remained static at N410/$1 at the close of transactions on Monday.
Meanwhile, at the digital currency market, investors are beginning to smile as most of the tokens tracked by Business Post closed bullish on Monday.
Ethereum (ETH) appreciated by 17.7 per cent to trade at N1,394,990.00, Ripple (XRP) moved up by 11.7 per cent to N520.49, Bitcoin (BTC) rose by 6.8 per cent to sell at N18,620,382.69, Litecoin (LTC) went up by 8.6 per cent to trade at N95,000, while Tron (TRX) increased by 5.9 per cent to sell at N37.73.
But the Dash (DASH) depreciated yesterday by 1.3 per cent to sell at N100,000.00, while the US Dollar Tether (USDT) went down by 1.5 per cent to sell for N503.99.