Dollar in trouble as Naira rises against dollar on parallel market

The Naira has risen marginally against the dollar on the parallel market despite the on-going scarcity of the greenback.

This follows report from our Bureau De Change source that the naira, pegged at the official exchange rate regime of N197 per dollar, has strengthened from N364/$1 it was on Thursday, June 9, to N362/$1, today, June 10.

Although the fluctuating rate of the naira against the dollar was experienced this week, there have been slight improvements on the price of the nation’s currency against the greenback in the black market.

Our BDC source in Lagos said: “We are beginning to see some sort of improvement as the dollar is partially in circulation. Although some shops still don’t have to sell.”

The Central Bank of Nigeria Monetary Policy Committee had last month announced plan to adopt a flexible exchange rate.

A flexible exchange rate system is a monetary system that allows the exchange rate to be determined by supply and demand.

Meanwhile, details of Nigeria’s flexible currency model will be ready in a “short while”.

This was disclosed by head of United Bank for Africa (UBA) said on Thursday, June 9, after chief executives of the country’s lenders met with central bank officials.

However, the bank has yet to clarify how the new policy would work, spooking foreign investors, long worried about getting caught in the middle of a currency devaluation.