In a recent development, the Nigerian Naira has witnessed a significant weakening against the United States dollar, as indicated by data released on the FMDQ securities exchange window. The Investors and Exporters (I&E) window, which serves as the official platform for forex trading, recorded a notable decline in the value of the Naira due to a substantial decrease in foreign exchange supply within the market segment.
According to the data published by FMDQ, the Naira concluded Wednesday’s trading at N763.17 per $1. This represents a 0.87 percent or N6.56 fall from the previous session’s rate of N756.61 on Tuesday.
The day started with the Naira being traded at N741.21, but it experienced a sharp decline throughout the trading session, reaching an intraday low of N815.00. This marked the lowest range ever recorded within the I&E window. However, it also saw a brief recovery to a high of N476.00 before eventually settling at N763.17 per $1 by the end of the day.
See Also: Naira Gains To N710/$ At Parallel Market
The foreign exchange supply during the market session amounted to $96.44 million, indicating a significant 28.3 percent decrease compared to the $134.47 million recorded on Tuesday.
In the parallel or unauthorised market, where currency dealers operate outside official channels, the exchange rate for the US dollar ranged between N758.00 and N760.00 across various states in Nigeria, including the Federal Capital Territory, on Wednesday.
The disparity between the rates in the authorised and unauthorised markets stood at N3.17, representing a 0.42 percent difference by the close of business on Wednesday.
These developments highlight the challenges faced by the Nigerian Naira in maintaining its value against the US dollar. The decreased foreign exchange supply and subsequent weakening of the currency on the I&E window emphasize the need for measures to stabilize the exchange rate and boost the availability of foreign currency in the market.
Source: Premium Times