The Naira plunged further down against the U.S Dollar on Friday, both at the investor’s window and the parallel market. The Nigerian currency closed at N389.50 to the dollar at the investor’s window, down by 1.50 points from N388 which it traded on Thursday, while at the parallel market it traded at N472.5 to the dollar, down by 0.5 points from N472 exchanged on Thursday.
The Euro closed at N530, while that of the Pound Sterling at N582. Market turnover at the investor’s window stood at 12.61 million dollars. It, however, closed at N381 to the dollar at the official Central Bank of Nigeria (CBN) window.
The IMF commenting on the price at the parallel market, N472 to $1, it stated that the weakening of other countries’ currencies vis-à-vis the US dollar leads to higher domestic currency prices of their imports, including from countries other than the U.S., and, thus, lower demand for them.
With Nigeria hassling with unsettled oil prices, growing inflationary pressures, and pain brought about by strict lockdowns, private sector members have expressed worry about the weakening exchange rate.
According to the latest report from the National Bureau of Statistics (NBS), already, Nigeria’s foreign trade volume fell from N10.12 trillion in the Q4 2019 to N8.30 trillion in Q1 2020, with the Central Bank of Nigeria (CBN), modifying the foreign exchange rates in a move to have a uniform rate, local manufacturers equally cautioned that many factories may shut down if outstanding obligations of over one year to foreign suppliers are not met.