Business Naira Falls Further, Sells At 383/US$1 At Parallel Market



Nigerian naira on Thursday fell further at parallel market for the second consecutive day in a week after gaining over 10 per cent last week.

The currency dropped by 3 naira to 383 to the dollar, 10 naira to 410 to Euro at the black market segment.

However, it appreciated 1.2 per cent to close 465 to the Pound sterling.


At the official market, the currency closed at 306.40 per dollar.

A Bureau de Change operator, who preferred anonymity, attributed the rise in the dollar exchange rate to the present high demand for the currency.

He said high profile customers had begun going to the parallel segment to deposit in advance for available foreign exchange.

The operator said: “The demand at the black market is still high. You will think that it will reduce since the banks are now giving BTA to customers, but the reverse has been the case in the last two days.

“This is a problem because price of commodities will not go down if the BDCs and parallel market cannot meet the demand.”

Meanwhile, the Central Bank of Nigeria, CBN has granted a national license to the Development Bank of Nigeria, DBN, to begin operations.

The license makes the DBN a Wholesale Development Finance Institution. As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs.

MSMEs contribute almost half of Nigeria's Gross Domestic Products (GDP) ( about 48.47 percent ) but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).