The parallel market sector of the foreign exchange market is currently not favourable for the Nigerian Naira as it has dropped to N890 per dollar.
This is due to the fact that its value is rapidly declining on the open market against the US dollar as the country struggles with a foreign exchange liquidity crisis that has resisted getting better despite efforts by the federal government through the Central Bank of Nigeria to remedy the situation.
According to Business Post, the exchange rate between the local currency and the dollar on the black market dropped to N890/$1 on Friday from N881/$1 on Thursday.
The Naira dropped to N895/$1 on Friday morning before trading at N890/$1, according to information this publication obtained from currency merchants in Lagos.
It was discovered that currency traders on the streets are hesitant to keep the dollar due to the lack of certainty.
After the CBN standardized exchange rates in June, the gap between the official market, peer-to-peer, and parallel markets was reduced to N1.
However, a few days later, everything started to fall apart once more, and the gap between the Investors and Exporters segment, the illegal market, and the P2P grew to almost N100.
The Naira closed on Thursday at N779.50/$1 in the spot market, down from the time the report was filed when it was sold at N885/$1 on the peer-to-peer market.
