Naira hits N740/$ at parallel market

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The Nigerian local currency, the Naira, has crossed the new red line at the Investors’ and Exporters’ Foreign Exchange (FX) window on the back of sustained demand pressures across the markets.

The exchange rate at the Investors and Exporters FX window established in 2017 to ease pressures for manufacturers and other investors have moved upward from as low as N415 per dollar in the year to a new level at N440 per dollar.

Most analysts note sampled by MarketForces Africa think the local currency needs to be devalued due to its over valuation. But then, lower market supply has been dealing negatively with the overvaluationexchange rate at the investors’ official window.

At the parallel market on Tuesday, currency traders exchanged the local currency at N740 to a United States dollar as pre-election demand worsened the exchange rate.

The Naira on Tuesday exchanged at N441.17 to the dollar at the Investors and Exporters window, a depreciation of 0.46 per cent when compared with N439.17 to the dollar at the close of business on Octber 7.

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