By John Ikani
The naira, on Tuesday, fell to N430.67 per dollar at the official market and N692 per dollar at the parallel market amid the lingering scarcity of the greenback.
The drop at the official market represent a decrease of 0.29 percent, compared with N429.43 it exchanged for the dollar on Monday. While the fall at the parallel market signifies a depreciation of N9 or 1.3 percent compared to the N683 it traded last week.
At the official market, naira rose to an intraday high of N415.00 and oscillated to a low of N435.00 before closing at N430.67 at the close of business on Tuesday.
The open indicative rate closed at N429.09 to the dollar while a total of 175.67 million dollars was traded in foreign exchange at the official Investors and Exporters window on Tuesday.
Bureaux De Change operators (BDCs) at the parallel market told newsmen that they purchase the greenback at N685/$, make a gain of N7 and then sell at N692.
According to the traders, the persistent naira depreciation is due to increased demand by customers and the scarcity of the dollar.
What you should know
It is worthwhile to note that Nigeria is facing a forex exchange crisis, and this has affected the price of goods and services, including local and international flights.
Recently, the International Air Transportation Association (IATA) said foreign airlines’ funds being withheld in Nigeria increased from $450 million in May to $464 million in July.
Due to the inability to repatriate its funds, Emirates Airlines, the flag carrier of the United Arab Emirates (UAE), said it would halt flights to Nigeria from next month.
To reduce the persistent FX pressures in the country, the World Bank and the International Monetary Fund (IMF) have advised the Central Bank of Nigeria (CBN) to unify exchange rates.
