The Nigerian naira experienced a significant decline in value on Friday, depreciating to N1,700 per dollar at the parallel section of the foreign exchange market.
By the close of trading, the naira had depreciated by 1.49 percent compared to its value of N1,675 per dollar on Thursday.
Notably, this rate of N1,700 per dollar represents the lowest value the naira has recorded since February 19, when it previously reached a low of N1,730 per dollar.
In Lagos, currency traders, also known as street traders, quoted the buying rate of the local currency at N1,680 per dollar and the selling rate at N1,700 per dollar, resulting in a profit margin of N20.
Meanwhile, at the official foreign exchange window, the local currency appreciated by 2.24 percent, rising from N1,576.1 per dollar on Thursday to trade at N1,540.78 per dollar on Friday.
According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as N1,691 and at a low rate of N1,530 during trading hours.
At the parallel market on Monday, the naira depreciated to N1,665/$ from N1,663 on September 20.
Maintaining the depreciation streak, the local currency fell further to N1,670 and N1,680 on Tuesday and Wednesday, respectively.
However, the naira rebounded to N1,675 on Thursday.
At the official FX market, the local currency depreciated to N1,562.66 on Monday — from N1,541.52 on September 20.
Subsequently, the naira further depreciated to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before appreciating to N1,576.1 on Thursday.
On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.
The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.
On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.