Naira depreciates against the Dollar at parallel market

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The Naira on Friday depreciated against the dollar at the parallel market after several days of appreciation.

Nigerua’s currency lost N7 to exchange at N465 to a dollar after closing at N458 on Thursday, while the Pound Sterling and the Euro traded at N542 and N480.

At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, which is CBN’s controlled rate, while Pound Sterling and the Euro closed at N610 and N520.

Trading at the interbank market saw the Naira sold at N305.25 to a dollar.

CBN injected over 500million dollars into the market, to boost liquidity, but the Naira continued to depreciate.

Traders in the market expressed concern about the depreciation of the Naira in spite the gains earlier recorded.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said there was need for a review of the distribution mechanism.

“Many banks are selling to only clients with current accounts and not to savings account holders and there is also increasing demand for forex from our neighbouring countries.

“The different applicable exchange rates and volumes with Travelex and banks need to be harmonised and with that of BDCs to reduce friction,” Gwadabe said.

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