For the first time in decades, the naira exchange rate at the Investors’ and Exporters’ (I&E) window- the official market rate- on Monday weakened below the parallel market rate.
The naira depreciated by N107 to close at N770/$1 at the I&E window, weaker than N757/$ it exchanged at the parallel market rate.
The local currency, which closed on Friday at N663/$1 at the I&E window struggled to sustain the appreciation tempo after dollar supply to the market shrank and manufacturers struggled to source dollars for items not valid for forex access.
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Analysts also said that Friday’s low closing rate at the I&E window attracted forex buyers interested in getting the greenback at cheaper rates to that segment of the market.
The Central Bank of Nigeria (CBN) unified all exchange rates into the I&E window last Wednesday and allowed market forces to determine exchange rate for the naira.