Naira depreciates to N425 at parallel market

The naira has dropped three points to trade at N425 against the United States dollar at the parallel (black) market, on Monday.

The local currency was exchanged at a rate of N422 to a dollar on Friday after a slight recovery from the N425 it was exchanged with a dollar on Thursday, September 1.

More so, one British Pound sterling and a Euro were bought for N535 and N464 respectively.

At the interbank sector of the forex market, the Naira exchanged for N314.20 as against Friday’s close of N214.77 against the dollar.

The local unit at the same official window last Friday was exchanged at N404.79 and N341.41 to one Pound Sterling and one Euro, respectively.

Dealers at Afrinvest West Africa Limited said the foreign exchange market continued to writhe from the impact of the Apex Bank’s decision to suspend some banks from interbank market, with the impact felt more at the parallel market. Accordingly, parallel market rate depreciated all week, from N413.00/US$1.00 on Monday to N420.00/US$1.00 by midweek and a low of N425.00/US$1.00 on Thursday. At the interbank, the spot rate traded within a tight range, hovering between N318.83/US$1.00 at the start of the week and N313.31/US1.00 by Thursday, an appreciation from penultimate week Friday’s N314.95/US$1.00 on the back of CBN’s interventions during the week as well as US$327.00million worth of foreign exchange (FX) inflow, out of which US$270.00million was channeled into the local debt market.