Naira weakens in parallel market, hits N470/1$

Naira weakens in parallel market, hits N470/1$

There were indications yesterday that the naira had fallen to its weakest level in six weeks in informal trading as Central Bank of Nigeria (CBN) interventions in the official window failed to meet demand.

At the parallel market yesterday, the naira changed hands for N470 perdollar, the lowest since September 29, according to abokifx.com, a website that collates street rates in Lagos.The naira closed at 382.10 per dollar on the spot market, where the central bank sells limited amounts of the greenback bank to importers.

The naira had traded for N468 and N466 against one dollar at the parallel market onThursday and Wednesday respectively, while it sold for N465 and 464 per one dollar at the Lagos bureau de change on Friday and Thursday respectively.

Agency report stated that the naira had lost all ground it gained after the regulator started weekly interventions, signaling the continuous existence of pent-up demand for the dollar. The CBN resumed sales to licensed bureau de change operators in September after the federal government opened up international travel following the lifting of COVID-19restrictions.

The money available in the official window is insufficient to meet demand, Julius Tayo-Olufemi, chief executive officer of Cephas GraceInternational Ltd., which imports home appliances, said by phone.

“Ona monthly basis, I need about $100,000 to $150,000 and the maximum I can get atthe controlled price is $20,000. So I have to sort out the remaining balancemyself,” Tayo-Olufemi said.

Yearly Christmas season import bill pressure, which usually starts late November and disappears in January, may be coming early, according to Omotola Abimbola, analystat Chapel Hill Denham.

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