The Nigerian naira experienced a significant decline against the United States dollar at the parallel market, closing at 900/dollar. This drop comes just two weeks after the local currency was sold at 960/dollar in the black market.
The naira had shown signs of improvement in recent days, but the shortage of US dollars on the black market led to a renewed downward trend. Earlier this week, the naira was trading between 850/dollar and 880/dollar.
On the same day, the naira also fell on the Investor & Exporter window, closing at 773.42/$. This was a drop from the previous day’s close of 757.10/$ at the I&E Window.
Bureau De Change (BDC) operators reported selling the dollar between 895/dollar and 905/dollar on Wednesday. The Central Bank of Nigeria has threatened to revoke the licenses of BDCs that violate its rules, particularly related to allowable exchange rate margins and compliance reporting.
The Central Bank had recently directed BDCs to trade foreign currencies at rates similar to those on the Investor & Exporter forex window, and it emphasized the need for compliance with its regulations to maintain their operating licenses.