Naira exchanges for N603 per dollar at parallel market

Dollar exchanged at N603 (average) at Lagos and Abuja parallel markets this week, indicating a worsening liquidity crisis in the foreign exchange market of Africa’s biggest oil producer.

Between June 2021, and June 2022, dollar-to-naira exchange rate has risen from N500 to N603 at the parallel market, signifying the greenback appreciated by 21 percent within the period.

The margin between the official and the parallel market rates on Tuesday was N187.28, a situation believed to be fuelling arbitrage and worsening an already bad FX supply situation.

At the Importers and Exporters (I&E) widow, a dollar exchanged at N415.72, gaining N5.53 in three days. But year on year, the naira weakened by nearly one percent in relation to the dollar, rising from N411 to N415.72.

Punch/Hauwa Abu