Nigerian Naira is currently trading at over 2,000 Naira against the British pound in the parallel market, New Telegraph reports.
Malam Ibrahim, a Bureau De Change (BDC) operator in Wuse Zone 4, confirmed the price of the local currency to our correspondent On Monday, February 19.
According to the news report, the new rate is higher than the N1,930 reported on Saturday and is currently the lowest point in the naira’s historical performance.
In the parallel FX market, where the naira is unofficially trading at N1,673 from N1,670/$ on Friday, the naira also lost value in relation to the dollar.
Confirming the development, Ibrahim said, “Yes it is true, we are currently selling above N2,000 for the pounds and it is still about the heavy and consistent demand for these currencies.”
Despite the Central Bank of Nigeria enacting several initiatives to support the foreign exchange supply, these developments continue.
The statement by the CBN to stop foreign oil companies operating in Nigeria from instantly sending 100% of their foreign exchange earnings to their parent businesses overseas was one of the most recent measures.
Experts in the market credit the latest drop to a sustained increase in demand for US dollars that has been visible since January 1.
The main causes of this increased demand include a sizeable amount that is attributable to companies actively attempting to replenish inventory or get raw materials, which raises the need for foreign exchange.