The parallel market saw Nigeria’s currency hit a one-year low due to anticipated exchange-rate management changes under Bola Tinubu’s presidency.
Naira fell to 775 for a dollar on Friday from 762 the previous day in an unregulated market in Lagos, said Umar Salisu, an exchange bureau operator who is monitoring data within Nigeria’s commercial capital. After stabilizing for most of the year, the unit has weakened steadily on the parallel market since last week.
Under President Buhari’s second term, Nigeria’s economy operated with a tightly controlled official rate and little liquidity as the largest economy in Africa. With his campaign, Tinubu promised to make the exchange rate regime more flexible, and he had raised expectations that he would relax government controls in order to allow a devaluation of the naira. In order to mitigate the trade imbalances and dollar shortages that hamper economic growth, Absa Group Ltd. estimated in early December that the new leader might allow a depreciation of about 15% as soon as he takes office.
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In the same month, the naira spot rate slid to a record low of ₦465.07 against the dollar on May 18, which is another reason why it has been pushed down this month. At 4:15 p.m. local time on Friday, the dollar was trading at ₦464.60.
Domestic currency strengthens to N770/$1 in the parallel market, and the naira appreciates to N570 against the pound sterling in the interbank segment. The rate changed from N571.93/£1 to N573/£1. The euro closes at N495.41/€1, down from N497. BTC was priced at around $26,000 in the cryptocurrency market amid ongoing negotiations between Democrats and Republicans over a possible deal before the extended June deadline.
