Nigeria’s Naira Crashes to Its Biggest Fall – Exchanges above N1,000/$

VAM News Update

A widening gap between the official and parallel market exchange rates of the Nigerian naira indicates the government’s lack of capacity to stabilize the currency and the likelihood it may depreciate further, according to Fitch Ratings Inc.

The naira was quoted at N1002 per dollar at the parallel market on Friday, according to Umar Salisu, a foreign exchange operator who compiles the data in Lagos, the nation’s commercial hub.

But it was 26% stronger at 745.19 naira/dollar in the official window, according to FMDQ, a Lagos-based platform where the currency is traded.

The naira has weakened sharply in street trading in the last two weeks as the central bank abstained from increasing the supply of the greenback at the official window, where the currency rate has been very volatile. Naira non-deliverable contracts for three months time traded at a record 821.38 per dollar on Friday.