• Monday, December 04, 2023
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Naira loses 1.48% in official market, firms on black market

Naira on Wednesday fell by 1.48 percent despite increased dollar liquidity at the official foreign exchange (FX) market.

At the end of trading on the Investors’ and Exporters’ (I&E) forex window, the dollar was quoted at N756.21, which was weaker than N745.19 quoted on Tuesday, data from the FMDQ indicated.

The naira depreciation followed increased demand for dollars despite slight increase in FX liquidity.

Read also: Naira Faces Further Weakness Amid Dollar Shortage, Fitch Says

The daily foreign exchange market turnover increased by 17.97 percent to $95.70 million on Wednesday from $81.12 million recorded on Tuesday.

There was an improved transaction in the market as the willing buyers and willing sellers brought dollars but it was not enough to meet demands.

Read also: From N0.62/$, naira falls eightfold in 50 years

At the parallel market, also known as black market, naira strengthened against the dollar at the close of business as demand moderated.

The dollar closed at N1,000 on Wednesday, gaining N5 over N1,005 during the morning trading.

Read also: Naira pains exceed gains on weak CBN FX reform

On Tuesday, naira gained 0.79 percent (N8) over the dollar as the foreign exchange resumed after the independence holiday.

The market opened with the dollar trading at N1,000 on Tuesday as against N1,008 on Friday at the parallel market.