By Joseph Ibrahim
The value of the Naira against other currencies has been on a downward slope, betraying initial hope that the unification of the parallel and official foreign exchange markets would shore up its value.
The Naira exchanged N745 on average to a dollar before the Central Bank of Nigeria (CBN) announced the unification policy which kicked off two weeks after Bola Tinubu was inaugurated President.
The naira currently traded on average of N792.50 at the unofficial parallel market on Thursday, July 6, 2023.
The current rate is about 0.94% higher than N785 traded on Wednesday, July 5, 2023, leading to a depreciation of the naira against the US greenback.
The depreciation was said to be caused by heightened demand for dollars by importers and individuals who want to travel for business, school and for speculative reasons.
The naira depreciated by 3.52% at the Investors and Exporters (I&E) window as traders embarked on the willing buyer and willing seller activities.
According to data from FMDQ, the naira was quoted at N742.31 as against N768.44 quoted on Tuesday.
Experts are worried that the development is leading to a growing gap between the official and parallel market rates, thereby defeating the unification purposes of the Nigerian government.
On June 14, 2023, the Central Bank of Nigeria collapsed all segments of the official market to the I&E window, where it reintroduced the willing buyer and willing seller model.
Based on the adjustment, the official rate increased from N463.38 per dollar to the current rate of N756.6 currently quoted by the CBN.
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