GistReel
Nigeria’s Naira weakened against the United States dollar on Wednesday, recording losses in both the parallel market and the official foreign exchange window.
The naira fell to N1,405 per dollar in the parallel market, down from N1,389 recorded on Tuesday.
The decline reflects renewed pressure on the local currency in the informal exchange segment.
At the official market, the naira also depreciated, closing at N1,361.5 per dollar in the Nigerian Foreign Exchange Market (NFEM), compared with N1,356.5 per dollar a day earlier.
Official exchange rate slips
Figures released by the Central Bank of Nigeria (CBN) showed that the indicative exchange rate rose by N5, signalling a corresponding weakening of the naira against the dollar.
As a result, the gap between the parallel market rate and the official exchange rate widened to N43.5 per dollar from N32.5 per dollar recorded on Tuesday.
Forex market turnover drops sharply
Meanwhile, trading activity at the official market declined significantly.
Interbank turnover at the NFEM dropped by 56.8 per cent to $54.3 million on Wednesday, compared with $125.7 million recorded the previous day.
According to reports, the sharp decline in transaction volume comes amid ongoing efforts by monetary authorities to improve liquidity and stability in the foreign exchange market.