The Nigerian naira has dropped to N614 against the dollar at the parallel section of the foreign exchange market.

The figure signifies a depreciation of N7 or 1.2 percent compared to
the N607 it traded last two weeks.

At the official market, the naira also depreciated by 0.21 percent to close
at N421/$ on Monday, according to information obtained from FMDQ
OTC Securities Exchange – a platform that oversees official foreign-
exchange trading.

Nigeria operates multiple exchange rate windows.

International organisations such as the World Bank and the International
Monetary Fund, IMF, have constantly advised the Central Bank of
Nigeria, CBN, to unify the official and parallel market exchange rates.

But Godwin Emefiele, the CBN governor, had said that despite advice
offered by IMF and the World Bank, developing economies such as
Nigeria had the liberty of adopting “homegrown solutions” to their
economic problems.

According to him, the managed floating exchange rate, which allows the
CBN to intervene in the market when there is a supply shock, would be
in place as long as supply exceeds demand.