Naira weakens across FX markets as dollar shortage lingers

Nigeria’s Naira weakened across official and unofficial markets as dollar shortages linger on Tuesday and Wednesday on the foreign exchange (FX) market.

On Wednesday, Naira fell to N1,150 per dollar, losing 0.43 per cent over N1,145/$1 on Tuesday at the parallel market, also known as the black market.

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Some street traders bought dollars at N1,145 and sold at N1,150. “There is dollar, but demand is high”, said aboki, a foreign currency trader based in Lagos.

At the Autonomous Foreign Exchange Market (NAFEM), Nigeria’s official FX market, the naira depreciated by 10.78 percent as the dollar was quoted at N830.97 on Tuesday as against N750.14 quoted on the previous day, data from the FMDQ indicated.

Currency dealers quoted dollars as high as N1,121 on the spot segment and as low as N600 per dollar.

The daily foreign exchange market turnover declined 30.71 percent to $122.46 million on Tuesday from $176.75 million recorded on Monday.