Naira further weakened at the parallel market on Monday

Business

Fears of a further devaluation of the nation’s currency, the Naira, heightening on Monday as the Dollar exchanged at N600 at the parallel market.

The rate at the Importers and Exporters Window was, however, N415.75 on Monday, widening the exchange rate spread to N184.25.

Punch reports that, at Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators,  Mohammed Isa, and Abu Abdullahi, put the rate at N599 to $1 at 10am and 11.14am respectively.

However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday.

One of the two BDC operators, Abu Abdullahi, said: “If I reduce this by N1, I will not be able to make any profit.”

And at the Lagos airport on Monday, a BDC operator, Adamu Haruna, told Punch that the rate was “N600 per $1, no more, no less.”

Punch further reports that, a BDC operator at Amuwo-Odofin in Lagos, Bala Usman, gave an initial rate of N598 to $1 in the morning but changed to N599 at 2.53pm when contacted.

“The demand is increasing and the dollar is very scarce now,” he said.

Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.

The country’s external reserves fell by $313m in March, according to figures obtained from the Central Bank of Nigeria (CBN).

Politics is also a key factor, as experts see politicians mopping up dollars for election primaries this month.

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