Naira falls to N1,420/$ at parallel market amid dollar scarcity

The naira on Thursday, April 25, recorded a great fall against the dollar and other global currencies at both official and parallel markets.

The naira which opened at N1,300 to dollar closed at N1,420 to dollar at the parallel market.

The N120 depreciation was attributed to the drop in dollar liquidity and speculative activities in the market.

The naira traded at N1,309 at the official market, representing 0.10 per cent depreciation from Wednesday’s closing rate.

Managing Director, Financial Derivatives Company (FDC) Limited, Bismarck Rewane stated that the local currency had since February, appreciated significantly across the markets, influenced by sanitisation of the forex market, a rise in forex supply and a fall in the demand for dollars.

He said: “However, the pressing question remains, will the naira tumble again? The answer is No, if Nigeria continues to do the right things.

"Prospects for forex earnings are promising, with foreign portfolio investments on the rise.

"Nigeria’s key export commodities have also seen significant price surges, with cocoa trading at a record high of over $10,000 per tonne in the global market and oil prices exceeding $85pb as oil production reached an impressive 1.48mbpd in February 2024.”

BEB