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  • Business - Economy
  • Updated: May 28, 2021

Naira Plunges In Parallel Markets After CBN Devaluation

The Naira fell at the parallel market on Thursday after the Central Bank of Nigeria devalued its official exchange rate by 7.6 percent and adopted the NAFEX figures.

Nigeria's local currency sold as low as N495 against the dollar from Monday's N486, according to data from abokifx.com. The naira opened at N411.08 against the dollar on the investors and exporters window, otherwise called NAFEX.

The migration of the apex bank to Nafex, coupled with the country’s external reserve losing N987.1 million in about 6 weeks, seems to have driven speculative trading which pushed the local currency lower.

Central Bank governor Godwin Emefiele confirmed on Tuesday that the central bank is no longer dealing in the official rate of 379, but instead has adopted the Nafex for government transactions. It will keep monitoring and intervening in the market to keep the value of the local currency within a range that it deems fit, he said.

The naira is now close to a 3 and a half year low hit in November last year as worries linger about the gap between the investors' rate and the parallel market.

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Oluwatosin Ogunjuyigbe
Oluwatosin Ogunjuyigbe

A seasoned business content writer, financial markets analyst, and tech enthusiast.

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