Nigeria’s currency, the Naira advanced against the U.S. dollar at the Investors and Exporters (I&E) window of the foreign exchange (forex) market on Wednesday, rising to N386.94 to a dollar at the end of the trading session.
The local currency appreciated by N0.14 against the dollar, which on Tuesday exchanged for N387.08.
The rate of exchange used at the I&E differs from the Central Bank of Nigeria’s published rate, which is currently N360/$1.
According to the exchange rate platform, abokiFX, Naira weakened to N450 a dollar on Wednesday, compared to the rate of N448 recorded on Tuesday.
The depreciation in the value of Naira at the black market is attributable to the liquidity pressure on the forex market despite the central bank’s efforts to strengthen the local currency.
Read also: Naira appreciates against dollar at parallel market
Data from the daily trading at FMDQ (where forex is traded by importers and investors) reveal that Naira strengthened against the dollar by N0.02, closing at N386.94 to a dollar compared to the indicative rate of N386.96/$1 at which it opened on Wednesday.
The opening indicative rate on Wednesday is equivalent to a loss of N1.01 when compared to the rate of N385.95 at which it opened on Tuesday.
The Wednesday turnover recorded around 96 per cent growth at $62.28 million relative to that of the day before.
Even though the apex bank has been intervening in the forex market, the $62.28 million turnover posted yesterday is significantly lower than the daily average of around $300 million recorded last year.
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