Naira stays unchanged at N425/$1 at parallel market

Nigeria’s currency, Naira has remained at N425/$1 in the black market today, September 6, as it was on Monday, September 5

This would leave Naira’s black market value unchanged for two consecutive days after it crashed to an all-time low of last week. According to currency traders and economists, the local currency poor performance at the parallel market has been triggered by increased scarcity of the greenback.

The currency hit its record low hours after a data released by the National Bureau of Statistics showed that the economy was in recession.
The naira has continued to weaken in the parallel market as Bureau de change operators have been finding it difficult to access their forex account and get dollar supply, after the central bank suspended nine commercial lenders from the market last week.

recalls that the CBN banned nine commercial banks from the forex market for failing to remit the Nigerian National Petroleum Corporation’s $2.334bn into the Treasury Single Account, in line with President Muhammadu Buhari’s directive last September. However, there is hope the Naira may rally a comeback this week as the CBN has re-instated the eight banks banned last week from operating in the country’s foreign exchange market. Also, Bureau de Change operators have also raised the hope of a gradual appreciation of the local currency in the near term, as the CBN licensed 11 new international money transfer operators to address the dollar supply side.