The Nigerian naira continued its downward trajectory against the United States dollar on Monday, causing distress among citizens as both the official and parallel foreign exchange markets witnessed significant depreciation.
The parallel market recorded an all-time low for the naira, plummeting to N1,730/$, representing a N60 or 3.59% drop from Friday’s closing rate of N1,670/$. The alarming depreciation prompted the Economic and Financial Crimes Commission (EFCC) to conduct raids on Bureau De Change (BDC) operators’ outlets in Abuja, resulting in the arrest of currency traders suspected of speculating against the naira.
The EFCC personnel reportedly attributed the rising exchange rate of the dollar in the parallel market to the activities of BDC operators.
Currency traders in Lagos and Abuja quoted the buying price of the dollar at N1,700 and the selling price at N1,730, reflecting a profit margin of N30. Demand for the greenback remained high throughout the day, with the dollar being sold at N1,725 at the Abuja airport, according to Ibrahim Yahu, a BDC operator.In the official window, the naira depreciated by 2.65% to N1,574.62 on Monday from N1,537.96/$ recorded on Friday.
Source: Punch