Naira on Tuesday fell to N1,010 per dollar following rising demand for the greenback on the parallel segment of the foreign exchange (FX) market, also called black market.
This represents 0.19 percent weaker than N1,008/$1 exchanged on Monday on the same market. Naira on Monday resumed depreciation against the dollar, after exchanging steady for four trading days at the parallel market.
At the Investor’ and Exporters’ (I&E) forex window, the naira depreciated by 4.27 percent as the dollar was quoted at N773.54 on Monday as against N741.85 on Friday and compared to N775.20 quoted on Thursday, data from the FMDQ showed.
This is despite an increase in the daily FX market turnover by 74.39 percent to $96.58 million as of Monday October 9, 2023 from $55.38 million recorded on Friday.
Muda Yusuf, CEO, Centre For the Promotion of Private Enterprise, said, the Central Bank of Nigeria (CBN) must ensure strategic and transparent intervention in the forex market to minimize volatility, as far as the reserves can support.
He said in addition to the I&E window, it has become necessary to create an autonomous window in the banking system where the currency can trade freely without any encumbrances. This is necessary to avert the diversion of remittances to other jurisdictions or the black market. “We cannot afford to live in denial at this time,” he said.