The Nigerian Naira, on Wednesday, saw a decline in value in the parallel market, exchanging at N930 per US dollar, compared to N925 observed earlier in the week, as reported by Vanguard.
This is as the exchange rate improved week-on-week in the Investors and Exporters (I&E) window to N758.1 from N775.6.
The prevailing exchange rates indicates a rising parallel market premium which is the gap between the parallel market rate and that of the I&E window.
The gap, as at last week Wednesday, was N153.41 per dollar, but has risen to N171.9 per dollar by yesterday, a development which has created a huge incentive for round-tripping and arbitraging in the foreign exchange market ecosystem.
Moreover, market observers have also noted that the Bureau de Changes, BDCs, have not helped the market as envisaged a month ago when the segment was re-admitted into the Central Bank Of Nigeria, CBN, official trading window for the purpose of opening the market to more independent forex supply and better access for individual retail end users.
The BDCs have, instead, lamented that the renewed depreciation of the local currency was mainly due to the scarcity of the foreign currencies.
