Nigeria’s currency is trading at over 2,000 naira to the British Pound in the unofficial market.
Malam Ibrahim, a currency exchange vendor in Wuse Zone 4, verified the exchange rates on Monday, stating, “Yes, it’s true, we are currently exchanging at above N2,000 for the pounds due to the constant and significant demand for these currencies.”
It was discovered that the rate has climbed from N1,930 on Saturday, marking the lowest historical performance of the naira against the pound.
In a similar trend, the naira has weakened against the US dollar in the parallel market, with the exchange rate moving to N1,673 from N1,670 per dollar on Friday.
These trends are occurring in spite of the Central Bank of Nigeria’s (CBN) efforts through various policies to increase the availability of foreign currency in the market.
Among these efforts was the CBN’s directive to international oil companies operating in Nigeria, limiting the immediate repatriation of 100% of their forex earnings to their overseas parent companies.
Market analysts point to a continuous increase in demand for the dollar since January as the main reason for the naira’s depreciation. This surge in demand is largely driven by businesses looking to replenish their inventory or purchase raw materials, which has led to an increased need for foreign currency.
