Naira loses 0.87% at official market driven by willing buyers, sellers

Naira on Wednesday lost 0.87 percent of its value against the dollar at the Investors and Exporters (I&E) forex window, Nigeria’s official market.

After trading on Wednesday, the dollar was quoted at N763.17 as against N756.61 quoted on Tuesday at the I&E window.

The naira depreciation was attributed to the activities of the willing buyers and willing sellers in the market as the market recorded high bids at the rate of N815 per dollar.

At the parallel market, naira also depreciated by 1.17 percent as the dollar traded at N765 on Wednesday compared to N756 on the previous day.

Traders attributed the naira depreciation at the black market to increased demand for dollars from individuals for school fees and travel allowances.

On June 14, 2023, the Central Bank of Nigeria (CBN) collapsed all segments in the FX market into the investors’ and exporters window.

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This means that all eligible FX transactions in the market shall only be done via the I&E window, all other windows cease to exist.

The I&E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer.