The naira on Thursday, January 25, hit an all-time low at the parallel market as the local currency traded at N1,415 in what was a 3.66 percent decline from N1,365 it traded a day earlier.
Bureau de Change, BDC, operators, put the buying rate of the dollar at N1,400 and the selling price at N1,415 — leaving a profit margin of N15.
“The issue we are facing is as a result of supply/demand imbalance,” a trader said.
Meanwhile, at the official section of the foreign exchange market, the naira depreciated by 0.41 percent to N882.24 on Wednesday, January 24, from N878.61 a day before.
FMDQ Security Exchange, a platform that oversees official foreign exchange trading in Nigeria, disclosed that the naira recorded a high of N1,313 and a low of N700.
This is coming after the governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso, said the naira is currently undervalued.
“We believe that the naira is currently undervalued,” Cardoso said.
The CBN boss said combined with coordinated measures on the fiscal side, the apex bank will accelerate genuine price discovery in the near term.
Cardoso said CBN has reverted to the conventional monetary policy approach with a focus on achieving price stability, which fosters sustainable economic growth.
