The exchange rate between Naira and other major currencies dropped significantly on Thursday 17th February 2021 as the naira sold for as high as N575/$1 at the parallel market. Naira depreciated against the US dollar from N570 to a dollar on Wednesday to trade at N575/$1.
This is according to information from Bureau De Change operators in Lagos State.
The change in the naira-to-dollar exchange rate represents a 0.88% depreciation compared to the previous trading session. It is also the lowest rate recorded since 21st December 2021.
Similarly, naira weakened against Euro to sell at N645/€1 at the parallel market, representing a 3.2% depreciation compared to N625/€1 recorded in the previous trading session. In the same vein, the exchange rate between naira and pounds fell by 0.67% to sell for an average of N755/£1, down from the N750/£1 it had maintained in recent times.
Naira also fell at the official window
Naira depreciated marginally against the US dollar by 0.12% to close at N416.5/$1 at the official Investors and Exporters window on Wednesday, despite the improvement in forex turnover at the market.
Notably, FX turnover increased by 37.36% to stand at $130.73 million compared to $95.17 million that exchange hands in the previous day.
The highest rate recorded during the day was N444/$1 while the lowest was N410/$1. The opening indicative rate however closed at N415.79/$1 before settling at N416.5/$1.
Meanwhile, the Central Bank continue to intervene in the official market, hence managing the volatility in the currency market. A cursory look at the data shows that the exchange rate at the I&E window has been averaging between N416/$1 and N416.6$1 since the beginning of the year.
What you should know
The Central Bank discontinued the sale of FX to BDCs in July 2021, which sent the exchange rate at the parallel market skyrocket from an average of N505 to as high as N520 in a single day, which then progressed to as high as N575/$1 later in October of the same year.
However, the market had remained stable at N570 to a dollar in recent weeks.
