Naira Collapses in the Parallel Market, Exchanges for N581 Per Dollar
- The forex market saw the Nigerian currency trade at N581 per dollar on Wednesday, January 19 2022
- This represented a 0.8 decline in comparison to the week before which saw the naira trade at N575.6 per dollar at the P2P market
- P2P is an online foreign exchange trading platform where buyers and dealers interface directly without the involvement of middlemen
The Nigerian currency, the naira has weakened further at the peer-to-peer (P2P) parallel market to trade for N581 to a dollar.
The fall represents a 0.8 per cent drop in comparison to N576.6 per dollar recorded at the end of the week before.
Source: Getty Images
A woeful performance
At the black market, the exchange rate stands at N571 per dollar as of Monday, January 17, 2022, which is a marginal appreciation in comparison to N416.5 per dollar recorded on Friday, January 14, 2022.
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Official investors and Exporters window indicates that the naira closed at N416.33 per dollar.
What P2P market is all about
P2P forex market means transacting foreign currencies directly with a dealer from an online platform.
In this process, middlemen are eliminated as traders bargain directly with dealers who may reside anywhere in the world.
The Central Bank of Nigeria (NBN) has been accusing online trading platforms of influencing the exchange rate in the country, thereby causing the crash of the naira.
The CBN governor, Godwin Emefiele accused an online platform, Abokifx of fixing the price of dollar, forcing the platform to disable the parallel market option on the website.
The naira has been predicted to crash further to N600 per dollar before the end of 2022.
Analysts predict further crash
Legit.ng reported that while the e-Naira is seeing massive and impressive downloads, the actual Naira is eroding in the official market.
On Monday, December 6, the actual Naira closed at N415 at the official Investors and Exports window.
The eNaira has seen commendable adoption after it was launched in October this year. But experts are not sure if those downloading the app are using it or keeping it for future use or for fun.
Source: Legit.ng
