Naira Drops To ₦2,000/1£ At Parallel Market

Nigeria’s local currency, the naira, has plummeted to a new low, now trading above 2,000 naira against the Great Britain Pound in the parallel market.

This was confirmed by a Bureau de Change operator in Wuse Zone 4, Malam Ibrahim, who spoke with Punch.

He noted the currency’s significant depreciation amidst persistent demand.

“Yes, it is true, we are currently selling above ₦2,000 for the pounds, and it is still about the heavy and consistent demand for these currencies,” he said on Monday.

This recent drop from ₦1,930 recorded on Saturday marks a historical low for the naira’s performance against the pound.

Similarly, the naira has also seen a depreciation against the dollar, now exchanging hands at ₦1,673 in the parallel forex market, down from ₦1,670/$ on Friday.

These developments come despite the Central Bank of Nigeria’s (CBN) efforts to stabilize the currency through various foreign exchange policies.

One such measure includes the CBN’s directive to international oil companies operating in Nigeria, restricting them from remitting 100% of their forex earnings to parent companies abroad immediately.

Market analysts have pointed to a consistent surge in demand for foreign currencies since January as the primary driver behind the naira’s decline.

A significant portion of this demand is attributed to businesses seeking to restock goods or purchase raw materials, which has placed an increased demand on the available foreign exchange.