By Ola Kay
The Naira on Wednesday slumped to N1,305 per dollar in the parallel market, from N1,255 per dollar on Tuesday.
Also, the nation’s currency depreciated in the Nigerian Foreign Exchange Market, NAFEM, to N1,308.52 per dollar.
Available data from FMDQ, otherwise known as financial market infrastructure group warehousing, showed that the indicative exchange rate for NAFEM rose to N1,308.52 per dollar from N1,300.15 per dollar on Tuesday, resulting in N8.37 depreciation for the naira.As a result of this development, the margin between the parallel market and NAFEM rates narrowed to N3.52 per dollar from N45.15 per dollar the previous day.
However, there are fears that if the trend continues, prices of commodity items will return to the previous all time high, which may exacerbate inflation further.
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