The naira was on Sunday exchanging at N500/$ at the parallel market.
The local currency lost N4 from N496/$ it was exchanging last Friday, also at the parallel market.The naira was stable at N379/$ at the official market.
The IMF had insisted that restrictions on access to foreign exchange for certain categories of goods, and multiple exchange rates create distortions in both private and public sectors decision making. They discourage long-term investment, encourage smuggling and provide avenues for corruption.
Moving forward, a removal of foreign exchange restrictions, and a full exchange rate unification, in line with the authorities’ Economic Recovery and Growth Plan (ERGP), will help keep the parallel market premium low in a more sustained manner.
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It will help Nigeria move towards a more diversified economy.
Many forex dealers believe that dollar demand pressure worsened as importers stocking up for Christmas sales and finding it difficult to source from the official market, are directing their demand to the parallel market.
The naira depreciation has also been linked to exporters moving huge dollar earnings to the parallel market where major transactions are now being handled.
Shipping and airline companies have also been accused of depriving Nigeria of the much-needed dollar earnings by not remitting export proceeds.
