The naira depreciated to its lowest level against the dollar, yesterday, in the parallel market, where the exchange rate rose to hit an all time high of N507 per dollar. Vanguard investigations reveal that the parallel market exchange rate rose from an average of N498 per dollar at the close of business, last week, to N507 at the close of business, yesterday, due to increased demand for dollar. This is very very bad oh, which way Nigeria?!
However the BDC rate remained N399 per dollar while BDC sources expressed optimism that the naira will appreciate against the dollar. Earlier this month, the Managing Director/Chief Executive, Financial Derivatives Company, Mr. Bismarck Rewane predicted the naira will further depreciate to N520 per dollar in the parallel market. He made this prediction as part of his outlooks for February while speaking at the monthly Lagos Business School (LBS) Executive Breakfast session held, last week. “The naira will slip to N520 in the market. Attempts to use forwards to stabilize the market will be futile. The Forex market is polluted and needs sanitization”, he said.