The naira, on Wednesday, crossed the N1,500 mark at the parallel section of the foreign exchange (FX) market.

The value of the naira fell to N1,530 against the dollar — an all-time low in the parallel market.

This is a 4.08 percent decline compared to the N1,470/$ reported the previous trading day. 

Currency traders, also known as Bureau De Change operators, quoted the buying price of the currency at N1,510 and the selling price at N1,530.

“One thing affecting the price of dollar is that there is a lot of demand,” an FX trader at the black market, known as Aliyu, said.

This expanded the gap between the black market and the official window, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), to N74.41 from N12.7.

On Tuesday, the official window rate had surpassed the parallel market price, however, on Wednesday, it was reversed as the naira gained at the close of trading in NAFEM.

The local currency appreciated by 1.82 percent in the official window to N1,455.59 — from N1,482.7 traded on Tuesday.

According to details on FMDQ Exchange — a platform where FX is officially traded — forex worth $72.33 million was transacted among market dealers.

The development comes after the senate committee on banking, insurance and other financial institutions summoned Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), over the “free fall of the naira”.

Speaking with journalists after a committee meeting on Wednesday, Adetokunbo Abiru, chairman of the panel, said the nation’s inflation rate has reached concerning levels and that Cardoso is scheduled to testify before the committee next Tuesday at 3 pm. 

The apex bank also released new measures for banks to manage foreign exchange (FX) risks and prevent losses.

The Cable