Nigeria’s parallel market exchange rate dropped below N500 for the first time since February 2, 2017. Data from our parallel market tracker suggest the dollar was exchanging for about N495 in some locations in Lagos.
The drop is mostly attributed to the latest CBN Forex policy which has led to the injection of nearly $10 million to the retail end of the market by the APEX Bank.
Whilst implementation of the policy is still in early stages, speculators are off loading dollars in droves in the hope that they can buy again, when there are indications that it the depreciation will remain momentum. This is not the first time we are seeing a strengthening of the Naira followed by a sustained decline, after a new CBN Policy.
The current drop is about a 5% gain in just over 2 days.