Naira nosedives to N595/$ at parallel market, forex demand surges

The naira has depreciated further against the dollar at the parallel section of the foreign exchange market.

According to The Cable, the Bureaux De Change operators popularly known as ‘abokis’ in Lagos quoted the naira at N595 to the dollar at the black market.

The figure represents a depreciation of N6 or 1 per cent compared to the N589 it traded last week.

The street traders put the buying price of the dollar on Thursday at N590 and the selling price at N595, leaving N5 profit margin.

They attributed the decline in the value of the naira to increased demand for the dollars.

A parallel market (street/black market) is characterised by noncompliant behaviour with an institutional set of rules.