The renewed pressure on the foreign exchange (FX) market intensified on Wednesday as the naira fell to 1,140 per dollar on the parallel market, also known as black market.
This represents 8.91 percent depreciation against the dollar when compared with an average of N1,046.66 exchanged on Tuesday.
Naira on Tuesday fell to an average rate of N1,046.66 per dollar following a shortage of dollars on the black market.
This represents 2.61 percent (N26.66/$) weaker than N1,020 quoted on Monday on the black market. The dollar was sold for N1,080 in Festac, N1,030 at Airport, and in Ibadan, it sold for N1,025/$1.
“Individuals who bring dollars for us have stopped selling because of the way the rate is fluctuating. So there is a slight shortage of dollars and demand is rising,” one of the street traders said.
The Naira on Friday strengthened against the dollar, gaining 22.13 percent (N290) as the dollar fell to N1,020 on Friday from the peak of N1,310 on Thursday last week on the black market.
At the Autonomous Foreign Exchange Market (NAFEM), market on Tuesday, naira weakened further as the dollar was quoted at N869.91 as against N809.02 quoted on Monday, data from the FMDQ indicated.
Willing buyers and willing sellers quoted dollar at a spot rate of N1,100 the highest ever and at the low rate of N700/$1 at the official market.
The depreciation of the naira at the NAFEM followed low dollar supply as the daily foreign exchange market turnover declined by 19.08 percent to $70 92 million on Tuesday from $87.65 million recorded on Monday.
Nigeria’s currency lost 4.24 percent of its value against the dollar at the official market, following a decline in dollar supply on Monday.
After trading at the Nigerian NAFEM on Monday, dollar was quoted at N809.02 as against N776.14 quoted on Friday, data from the FMDQ indicated.
The daily foreign exchange (FX) market turnover declined by 11.30 percent to $87.65 million on Monday from $98.82 million recorded on Friday.
At the parallel market, naira opened and closed at N1,020 per dollar on Monday after appreciating to N970/$1.
At the weekend, the Naira strengthened to N970 per dollar on the black market, following some positive sentiments around government plans to shore up dollar liquidity in the foreign exchange market.
Currency traders expect naira to appreciate today in anticipation of dollar flows from willing buyers and willing sellers at the NAFEM.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.