See Exchange Rate Today As Naira Falls To Lowest

Contrastingly, despite experiencing depreciation in the black market, the exchange rate in the official I&E window actually showed signs of improvement. It appreciated to N755/$1, a marked improvement from the previous day’s closing rate of N773.25/$1.

On the flip side, the parallel market, often seen as a barometer for economic sentiment, told a less rosy story. The exchange rate there plummeted to an unprecedented low of N1000/$1 on the same day.

This decline coincided with the Senate’s confirmation of Dr. Yemi Cardoso as the new Governor of the Central Bank of Nigeria (CBN).

This evolving scenario has further widened the disparity between the official and parallel market rates, which now stand at a staggering N245/$1 and continue to rise.

Such a significant gap is sparking fears of potential foreign currency roundtripping, where money is exchanged through unauthorized channels to exploit the rate difference.

Sources within the financial sector who spoke to NewsOnline Nigeria underscored the potential vulnerability the wide gap poses for forex stability in the country, suggesting that forex roundtripping could well be taking place.

One of our sources suggests that currency roundtripping may be a significant contributor to the existing market distortions, further exacerbating the scarcity of the dollar and the escalating Naira-to-Dollar rate witnessed in the FX market.

This scarcity, in turn, poses challenges for legitimate businesses seeking access to foreign exchange for essential transactions.