The Nigerian currency, Naira, has witnessed a significant fluctuation in value, depreciating by 11.72 units against the United States dollar at the official foreign exchange market on Wednesday. This development occurred despite a marginal increase in dollar supply, which rose by 2.50 percent to $336.54 million from $328.32 million recorded on Tuesday.
According to data from the FMDQ Securities Exchange Limited, the Naira was quoted at N1,329.65 per dollar, weaker than the N1,173.88 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange (NAFEM).
However, in the parallel market, also known as the black market, the Naira appreciated by 2.36 percent against the dollar, trading at N1,480 per dollar on Wednesday, compared to N1,515 quoted on Tuesday.
The summary of the FX market trading showed that the intraday high closed unchanged at N1,506 per dollar on Wednesday, while the intraday low strengthened to N1,010/$1 on Wednesday, compared to N1,150 per dollar closed on Tuesday.
This volatility in the Naira’s value highlights the ongoing challenges in the foreign exchange market and the need for continued efforts to stabilize the currency and promote economic growth.