According to Nairametrics, the Nigerian Naira has dropped to N604/$ at the parallel as of Thursday, May 19, 2022, from N565 at the start of the year.
According to the report, the most recent change is based on information obtained from Nigerian Bureau De Change operators.
BDCs attributed the increase in dollar demand to the election season, with politicians stockpiling dollars ahead of Nigeria’s primary elections this weekend.
Despite international pressure for the Naira to be fully floated, the Central Bank has maintained its managed float policy. As a result of the Naira’s crash in the black market, the gap between the official Investors and Exporters (I&E) window and the black market has widened.
Through intervention supported by external reserves, the CBN fixes the exchange rate in the I&E window at around N418. The difference between the I&E and the black market has expanded by N188 as the Naira continues to decline.