Nigeria’s naira to dollar exchange rate weakened at the parallel market on Thursday, June 3, 2021, moving very close to N500 to one dollar, further widening the gap with the NAFEX market.
At the parallel market/black market, the naira to dollar exchange rate depreciated and closed at N499 to one dollar compared to N498 to one dollar rate on Wednesday, June 2, 2021.
The closing rate indicated that naira depreciated in value by N1.
however, naira closed at the NAFEX or Investors and Exporters window at N410.9 on Thursday.
This is a appreciation in the local currency compared to a rate of N411.06 per dollar in the previous day.
The naira was on a free fall at the parallel market since last week, plunging to N495/$1 last Thursday from N487 per dollar at the beginning of the week.
Analysts have attributed the naira’s recent volatility to speculation triggered by the Central Bank of Nigeria’s (CBN) recent adjustment of the official exchange rate to N410 per dollar from N379/$1.
A Forex Trader at AZA Finance, Oghenefejiro Eduviere, said, “We expect it to continue weakening towards 490 as the market digests the effect of the new exchange rate regime.
“Lower liquidity and rising demand for the greenback will also keep the currency under pressure, with the Naira likely to drop towards 420 on the NAFEX window.”