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Naira heading to N600/$1, British pounds goes for N760/ £1

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After hitting a 48-year low against the US dollar in the black market on Monday, Nigerian currency has started a new journey to another unwanted record.

On Tuesday, at the unofficial window of the foreign exchange (FX) market, Naira depreciated by N7 against the U.S dollars to sell at N557/$1 compared with N550/$1 it traded on Monday.

Market observers are now concerned that, with the current rate of Naira depreciation to the dollar, history may repeat itself before the end of the year.

When the CBN first implemented a ban on the sale of dollars to Bureau De Change operators in 2016, Nigerian currency dropped by 46 percent, from N268/$1 to N495/$1 by December 31, 2016.

If the devaluation pace of 2016 is replicated, Naira could end up at N900/$1 by the end of the year.

Similarly, Naira also depreciated against the Pound Sterling by N10 to N760/£1 from the previous rate of N750/£1, while against the Euro, it lost N9 to quote at N645/€1 in contrast to N636/€1 it quoted a day before.

Read also: Naira starts week at N545/$

Meanwhile, at the official market, Naira gained slightly against the U.S currency on Tuesday.

Data recorded on the FMDQ securities exchange window where forex is officially traded, showed naira closed at N412.08 per $1 at the official window on Tuesday.

Tuesday’s performance represents a N0.67 or 0.20 per cent appreciation from the N412.75 it exchanged hands with the U.S dollar in the previous session on Monday.

The market segment’s FX turnover fell by 8.21 percent to $175.10 million, compared to $161.82 million recorded on Monday.

By the end of trading on Tuesday, the difference between both the official and unofficial dollar exchange rates increased to N144.92 from N137.25 on Monday.

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