Due to volatile nature of the foreign exchange market, most especially the unofficial segment, the Nigerian currency, the naira, has suffered a slight fall in the unstable parallel market, selling at N322 per US Dollar.
The local currency has continued in its keen contest against the dollar in the highly patronized black market, which has remained stable at the rate of N320 against the Greenberg in the last few weeks, but dropped slightly to N322 on Tuesday, 3rd of May, 2016 in Lagos and Port Harcourt, while exchanged at N321 per dollar in Abuja and Kano State.
However, the exchange rate of the naira against the GBP was pegged at N458 and EUR sold at N361 yesterday in the parallel market.
Daily Times Nigeria (DTN) further gathered that continued demanding for major forex has positioned the local currency in a setback mode in the black market against the U.S dollar.
Forex dealers noted that contest between the naira and the U.S dollar in the Nigerian black market is caused by instability in the exchange rate.
Speaking to our correspondent in Lagos, a Bureau De Change (BDC) Operator, Alh. Mustapha Muhammad, said that naira dropped by in the market by N2 from N320 it had maintained in the recent time.
He explained that the slight increase in demand for the Greenberg was noticed in the unofficial market, which he said likely responsible for the drop in the value of the naira.
According to him, more people demanded for the forex today, unlike last week Tuesday and Wednesday, where there were fewer demand of forex from business men and women across the country.
“The naira exchanged for N321 on Monday and fell further to N322 the second day in a week. We hoped that the value of the currency in exchange for the dollar will continue to rise as the Nigerian economy currently struggles”, he noted.
Meanwhile, the Central Bank of Nigeria (CBN) had said that speculators were behind the market burble which had made a mince-meat of the naira, sending it to low price of N320 to N325 to the US dollar in the recent time.
The CBN Governor, Godwin Emefiele, had accused speculators of conniving with bureau de change operators to undermine the efforts of the bank at propping up the naira and warned that such speculators would eventually be punished by the market.
Industry analysts say that a number of measures taken by the apex bank lately might have led to this improvement, including the decision to publish all forex sales from the inter-bank market to make for unprecedented transparency.However, volatility in the foreign exchange market has continued to position the Nigerian currency, Naira, and its economy in a negative mode, while debate to devalue the currency has divided both foreign and local financial experts, including industry stakeholders.
Although, financial analyst are expecting the foreign exchange (FX) rates to remain stable this week at the interbank market and Bureau De Change (BDC) segment of the market, while pressure at the parallel market may not slide further as envisaged by Nigerians.