NAIRAMETRICS
Credit ratings and research firm, Fitch Ratings Inc., has said the naira will continue to depreciate against the dollar as the increasing disparity between the official and parallel exchange rates of the Nigerian naira suggests that the government is struggling to stabilize the currency,
According to the Nairametrics exchange rate tracker, the naira currently hovers around N1000 to the dollar as of Wednesday.
In contrast, the official exchange rate on the FMDQ, a Lagos-based currency trading platform, stood at 745.19 naira per dollar, representing a 26% difference.
Performance of the naira in recent times
Over the past two weeks, the naira has significantly weakened in street trading due to the central bank’s reluctance to increase the supply of US dollars in the official market, where currency rates have been highly volatile.
Effects of recent reforms on the naira
Fitch Ratings highlighted the widening gap between the official and parallel market rates as an indicator of the challenges in maintaining exchange-rate liberalization and suggested the possibility of further devaluation in an emailed statement.
