The naira depreciated to N1,720 per dollar in the parallel FX market on December 11, 2024, widening the gap between official and parallel rates to N175. This marks a continuation of the naira's decline, which has affected both markets amid economic uncertainty in Nigeria.
The naira has continued its downward slide, weakening to N1,720 per dollar on Wednesday, December 11, in the parallel foreign exchange market. This marks a 2.99% drop, or a N50 decrease, from the N1,670 per dollar rate observed just the previous day.
Currency traders in Lagos, including bureau de change (BDC) operators, indicated that the naira is being bought at N1,700 and sold at N1,720, leaving a N20 margin for profit. This latest decline has extended a trend of depreciation that started earlier in December. On December 6, the naira stood at N1,600 per dollar, but it weakened to N1,640 by December 9 and further to N1,670 by December 10.
In the official market, the naira also showed signs of weakness, falling by 1.31% to N1,545 per dollar on Wednesday from N1,525 on December 10. Before this, the currency had fluctuated slightly, moving from N1,535 on December 6 to N1,538 on December 9, then improving briefly to N1,525 on December 10.
The gap between the official rate and the parallel market has now reached N175, widening from N145 just the day before. The Central Bank of Nigeria (CBN) recently stopped selling dollars to eligible BDC operators at a rate of N1,301 per dollar, which has contributed to the growing disparity between the two markets. This continuing depreciation is causing concern for both businesses and the general population, as it puts pressure on Nigeria’s already fragile economy.
