The Nigerian Naira continues to struggle against the U.S. Dollar, with the exchange rate at the parallel market slipping even further.
At the parallel market, also known as the black market, the Naira exchanged at N766 to the U.S. Dollar at that section of the forex market. This represents a 1.3%, or N10 decline when compared to three weeks ago, Investors King reports.
The buying price for the U.S. Dollar was put at N758, while the selling price was N766, leaving a profit margin of N8. According to some traders, the depreciation of the local currency against the greenback is due to increased demand from customers amid low supply. This has caused a scarcity of Naira notes, making it difficult for Nigerians to keep up.
Meanwhile, at the official forex market the Nigerian Naira appreciated by 0.04%, closing at N461.33/$ on Tuesday. However, this offers little consolation to Nigerians who are struggling with the scarcity of naira notes, especially following the redesign of N200, N500, and N1000 notes by the Federal Government.
Protests have rocked many parts of the country as citizens try to navigate this difficult situation. The Supreme Court recently adjourned a case instituted by state governments against the Federal Government challenging the implementation of the naira redesign to March 3, leaving many Nigerians uncertain about the future of the currency.
It remains to be seen how the naira will fare in the coming days and weeks, but for now, Nigerians must cope with the realities of a depreciating currency and a scarcity of notes.