The Naira has lost N5 to close at N510/$1 at the parallel market over rising volatility in the foreign exchange market.
The currency, which exchanges at N505/$1 at the weekend, failed to sustain last week’s rally.
The pressure against the naira at the parallel market followed Central Bank of Nigeria’s decision to stop dollar sales to bureaux de change (BDC) operators.
Investigations showed that pressure on the naira intensified after manufacturers and foreign exchange end users scrambled for scarce greenback to meet their business and personal needs.
Forex users preference for BDCs over banks have been linked to tedious documentation process and different levels of approvals required to purchase dollars from banks, which are usually not met at short notice.
Findings showed that request for dollar purchases at commercial banks’ branches are usually approved at the headquarters before noon.
