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On Wednesday, August 9th, the Naira was exchanged at a rate of N782.38 to the dollar within the market-driven Investors and Exporters (I&E) window.
The recent decline in the value of the Naira is attributed to the mounting backlog of unmet demand for dollars and a scarcity of the US currency in both the official and retail sectors of the market.
As reported by The Nation, there is an estimated backlog of $8 billion in demand within the official market, and the scarcity of dollars in the parallel market has led to a significant depreciation of the local currency. The official market has experienced a decrease in supply, with a turnover of only $45 million, while a substantial portion of the demand has shifted to the parallel market.
Furthermore, the Naira has been observed trading at N900 per dollar in the parallel market.
