Tuesday’s official market saw a 0.42 percent decline in the value of the naira despite a little increase in the number of transactions.
According to data from the FMDQ, the daily FX market turnover, which indicated the amount of transactions at the official market, rose slightly by 3.36 percent to $71.32 million on Tuesday from the $73.80 million recorded on Monday.
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As a result, the naira declined by 0.42 percent, trading at N775.32 to $1 on Tuesday as opposed to N772.12 to $1 on Monday at Nigeria’s official foreign exchange market, Investors’ and Exporters’ (I&E).
According to economists, the ongoing depreciation of the naira followed the lack of dollars caused by the low inflows of oil revenue, foreign capital, and remittances from the diaspora, among other sources.
The naira steadies between N920 and N925 at the various street trading sites throughout the nation on Wednesday at the parallel market, often known as the black market.
The dollar was quoted at N920 to N925/$1 during Tuesday’s intraday trading, a 1.09 percent (N5 to N10) decline from the N915 per dollar traded during the morning session.
After FX unification in June 2023, the difference in currency rates between the official and parallel foreign exchange (FX) markets grew to N150/$1 from N96/$1.
The difference between the official and parallel markets has already shrunk to N150 from N301 in 2021, according to the current currency rate.
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