Naira Plunges to N385 Per Dollar at Parallel Market

The Nigerian naira on Wednesday plummeted to N385 per dollar at the parallel market as demand the greenback intensified.

The currency however remained stable at the official interbank foreign exchange market as the interbank rate closed N199.34. Thus the gap between the interbank and parallel market rates widened to N185.66 per dollar from N127.53 Friday last week. The currency closed at N325 per dollar Friday last week. 

The naira also depreciated against the British Pounds to N505 per pounds in the parallel market.

“You know China had been on its one month annual holidays. But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays," a BDC operator said. 

"They had made 30 per cent down payment to order the goods and they now have to pay the 70 percent balance otherwise they will lose the 30 percent. That is why they are desperate and ready to buy dollars at any rate. Meanwhile supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon," the operator explained.

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