Naira firms up after three days of loses at black market

Naira on Friday regained its value against the dollar after depreciating for three days at the parallel market, also known as black market.

One dollar was trading at the rate of N918/$1 on Friday, representing 0.21 percent (N5) gain compared to N920 traded since Tuesday, according to data from the abokifx, an online platform that collates exchange rates at the unregulated market.

In some other street trading areas, dollars traded at N915/$1 as black market operators buy at N910. The naira appreciation was attributed to a moderation in demand for dollars.

Read also: Naira loses 3.32% in official market as dollar liquidity drops

“There are dollars in the market. Individuals bring dollars to us and those who need it to travel also come here to buy. We have enough dollars,” said one of the black market operators.

Naira steadied at between N920and N925 at the various street trading areas across the country in the last three days.

On Thursday, naira fell to N762.71 per dollar, losing 3.32 percent value against the dollar as liquidity dropped at the official foreign exchange (FX) market.

The volume of transactions at the Investors’ and Exporters’ (I&E) forex window dropped by 49.58 percent to $85.79 million on Thursday from $170.15 million recorded on Wednesday.

After trading on Thursday, the dollar was quoted at $762.71/$1 as against N738.18 quoted on Wednesday at the official FX market, data from the FMDQ indicated.

FX dealers maintained bids as high as N799.90/$1 on Thursday, stronger than N800/$1 bid on Wednesday. At the lower end they bid at N720/$1, lower than N701/$1 recorded on Wednesday and Tuesday.