The Nigerian naira, on Wednesday has depreciated to N980 against the US dollar at the parallel section of the foreign exchange (FX) market.
The figure represents a depreciation of N50 or 5.38 percent compared to the N930 it traded on September 13.
Speaking on the development, Currency traders, known as Bureaux De Change operators (BDCs), said the decline is largely due to the new exchange rate regime.
“This time, the rate is not affected by dollar scarcity; it is just a consequence of the new exchange rate regime,” a trader identified as Aliyu, said.
Meanwhile, at the official market, the local currency depreciated to close at N776.6 according to data from FMDQ Securities Exchange — a platform that oversees official FX trading in Nigeria.
Data from FMDQ showed that the market opened at N776.29 to the dollar, recording a high of N799.9 and a low of N720
A total of $71.01 million was traded at the investors’ and exporters’ window (I & E) window — Nigeria’s official trading window.
The naira has consistently experienced fluctuations since the Central Bank of Nigeria (CBN) implemented the currency float policy which now allows the exchange to be determined by market forces.
The apex bank released operational guidelines to BDC operators mandating them to send records of transactions through the Financial Institution Forex Rendition System (FIFX) as well as dictating the spread on buying and selling by BDCs within an allowable limit of – 2.5% to +2.5%.