Naira Drops To N604/$ At The Parallel Market

 

As at Thursday, 19th May, 2022, the Nigerian Naira has crashed to N604/$ at the parallel from N565 at the start of the year, according to Nairametrics.

 

The report stated that the latest change is based on information acquired from Nigerian Bureau De Change operators.

 

BDCs attributed the increase in dollar demand to the election season as politicians stocking up on dollars before Nigeria’s primary elections start over the weekend.

 

Despite international calls for the Naira to be completely floated, the Central Bank has maintained its managed float approach. As a result, Naira’s crash in the black market has widened the gap between the official Investors and Exporters (I&E) window and the black market.

 

Through intervention supported by external reserves, the CBN fixes the exchange rate in the I&E window at around N418. The difference between the I&E and the black market has expanded by N188 as the Naira continues to decline.