In the latest update from the investors and export, the Nigerian naira concluded Monday’s trading at N774.78 per US dollar within the investors and exporters (I&E) market. This marks a 4.27% or N31.71 depreciation from the N743.07 rate on Friday, according to data sourced from FMDQ Securities Exchange, the overseer of foreign exchange trading in Nigeria.
The I&E FX window serves as the official foreign exchange market for investors, exporters, and end-users, allowing for exchange based on current market conditions. After the government’s unification of exchange rate windows, the naira consistently exhibits fluctuations within the official market. In the informal parallel market, situated on the streets, Bureaux De Change (BDC) operators in Lagos’ Victoria Island area reported a notable demand for foreign currency.
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Operators set the dollar’s purchase price at N890 and the selling price at N897, leaving a N7 profit margin.A trader named Musa commented, “The dollar’s value keeps climbing it’s a mystery.” This depreciation further widens the gap between official and parallel market exchange rates.
PricewaterhouseCoopers (PwC), the professional services firm, has projected higher inflation and ongoing FX market volatility for August. The firm cautioned that the removal of petrol subsidies and the adoption of a managed float exchange rate system are likely to add pressure to inflation.
