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HomeTop NewsNigeria's naira depreciates vs dollar to N550 on parallel market, down 5.7%...

Nigeria’s naira depreciates vs dollar to N550 on parallel market, down 5.7% w/w

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By Oludare Mayowa

The Nigerian naira weakened to its new lowest against the greenback as it was sold at N550 to the dollar on the parallel market on Monday against N547 a dollar on Friday, traders said.

The naira has lost 5.76 percent week-on-week as it was sold at N530 to the dollar on the black market last Monday.

The local currency also depreciated against the dollar on the official NAFEX window by 0.18 percent on Monday, closing at N412.75 to the dollar.

The currency closed at N412 to a dollar on Friday while most participants at the I&E forex window maintained bids between N400.00 and N413.00 per dollar.

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On Saturday, the Central Bank of Nigeria (CBN) said it has no intention to convert domiciliary accounts holdings into naira, contrary to speculation and fake circular currency circulating in the social media.

In a statement signed by the regulatory bank’s Director of Corporate Communication, Osita Nwanisobi, the CBN said the speculation was intended to trigger panic in the foreign exchange market.

Currency traders said the inability of the CBN to meet demand for the dollar will continue to drive demand in the parallel market and impact negatively on the local currency value.

Nigeria is currently experiencing dollar shortage due to dwindling inflow from exports proceeds and other official sources.

The CBN had last year lifted embargo on payment of diaspora remittances to beneficiaries in the currency the it was sent, this was to ensure increase dollar inflow into the country and reduce pressure on the official window.

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