The naira to dollar exchange rate has plunged to approximately N1,745 per dollar on the parallel market, a significant drop from the sub-N1,600 levels seen at the end of last week.
Previously, it was reported that the rate hovered around N1,685 per dollar, but it swiftly depreciated as business activities picked up momentum.
According to Nairametrics’ latest checks, several quotes are now surpassing the N1,700 per dollar threshold, indicating that the gains from last week may have been nothing more than a “dead cat bounce,” a term used in financial markets for short-lived rallies.
P2P exchanges have pegged the rate at N1,715 per dollar, while certain IMTOs quoted it at N1,745. Stock trading platforms like Bamboo and Trove reported N1,730 and N1,736, respectively.
In contrast, the official exchange rate closed at N1,525 per dollar on Tuesday, marking the highest level since the EFEM was launched.
This widening gap of nearly N200 between the official rate and the black market has raised concerns about a potential disconnect between the Central Bank’s managed official market and the parallel market, where most retail transactions take place.
Some BDC operators believe the ongoing depreciation could be attributed to speculators, who continue to hold firm, despite the Central Bank‘s efforts to bolster the trading platform.
