BREAKING: Naira hits all-time low at N895/$1 amid rising demand in black market

On Sunday, the Nigerian naira dropped to an all-time low of N895 per dollar at the parallel market, also known as the black market, as demand for the greenback continued to surge. The foreign exchange (FX) market closed with a 1.12 percent depreciation from N885/$1 on Thursday.

Traders attributed the decline to increased demand from individuals planning to travel for business or education purposes. The naira is expected to breach the N900/$1 threshold before any potential recovery, according to Bismarck Rewane, the managing director/chief executive officer of Financial Derivatives Company Limited.

Meanwhile, at the official foreign exchange market, the Investors’ and Exporters’ (I&E) forex window, the naira appreciated by 4.30 percent, with the dollar quoted at N743.07 on Friday, up from N776.50 on Thursday.

Both buyers and sellers were keen to transact at rates as high as N799 per dollar, indicating a stronger demand compared to the previous week. In the market auction, bids of N475 were observed, slightly weaker than N465.00 in the previous week.

Overall, activity at the I&E window declined by 10.1 percent on a weekly basis, amounting to $389.1 million. However, the base currency (dollar) rose by 0.1 percent against the Naira, settling at N776.50/$1.00.

In the parallel market, the dollar appreciated by 2.3 percent week-on-week against the Naira, reaching N890.00/$1.00. The spread between both FX rates widened, with the weekly average expanding by 25.7 percent to N111.9, as noted by analysts at Afrinvest Securities Limited.