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Naira Depreciates Further to N385/$, N505/£ in Parallel Market

By Babajide Komolafe

The naira on Wednesday depreciated further to N385 per dollar in the parallel market as demand for foreign exchange intensified in the market.

This implies the naira has depreciated by N60 against the dollar this week in the parallel market, when compared with the closing exchange rate of N325 per dollar Friday last week.

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.

Vanguard investigation also reveals that the naira depreciated against the British Pounds to N505 per pounds in the parallel market implying N65 depreciation when compared with the closing rate of N440 Friday last week.

Investigations reveal that the sharp depreciation of the naira in the parallel market this week is driven by increasing demand by importers sourcing dollars to pay for imports from China.

Read more at: http://www.vanguardngr.com/2016/02/naira-depreciates-further-to-n385-in-parallel-market/

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