- Exchanges 436/$
- Foreign Exchange reserve falls below $25bn
naira fell to an all-time low of 436 to a single dollar on yesterday at the parallel market, as scarcity of the greenback continues to hurt the forex market.
Foreign exchange reserves also touched a new 11-year low of $24.76 billion on Wednesday, the lowest since June 2005.
According to online newspaper TheCable, the British pound, and the European flagship currency, euro, traded at N555 and N472 respectively, at the parallel market.
The interbank market was relatively stable at N305.5 to the dollar, while the British and European currencies went for N399 and N343 respectively.
Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), had said the parallel market could not be used to evaluate the true value of the local currency.
“It is unfair to use the shallow market as a basis for determining the value of our currency. No one uses the Travelex rate at Heathrow to determine the exchange rate for the pound in the United Kingdom,” Emefiele said.
“So it is unfair to use that to determine the value of our currency. Those who are dealing in the market are doing so illegally. We should not be encouraging the tendencies of those people who are involved in capital flight, or those who want to conduct foreign exchange business without providing necessary documentation.”