Nigeria’s currency, Naira on Monday depreciated to N622 per dollar at the peer to peer (P2P) parallel market popularly called black market, as scarcity of USD dollar persisted at the official market, forex trading monitoring reveals.
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The naira depreciation followed the demand pressure from end users who could not purchase dollars from the banks due to shortages.
Nigerian economists/analysts have said there are no immediate solutions to naira depreciation after all the foreign exchange measures introduced by the monetary authority to stem the tide.
However, the Central Bank of Nigeria (CBN) is expected to address the foreign exchange challenges at its ongoing Monetary Policy Committee (MPC) meeting in its Lagos office.
“I don’t think there are things anybody can do in the immediate to stop the Naira depreciation because our balance of trade and balance of payment are negative. Nigeria is currently importing more than it is exporting”, said Johnson Chukwu, managing director/CEO Cowry Asset Management Limited during Nairametrics economic outlook Webinar.
Most currency dealers who participated at the foreign exchange auction on Monday maintained bids between N414.00 (low) N444.00 (high) per dollar.
The daily foreign exchange turnover increased marginally, by 8.67 percent to $95.58 million on Monday from $87.95 million on Friday, according to the data.
At the money market, the Overnight (O/N) rate remained unchanged at 14.00 percent, while the Open Repo (OPR) increased by 0.17 percent to close at 14.00 percent as against the last close of 13.83 percent.