Naira loses at black market first time in five days

The naira weakened against the U.S. dollar at the parallel market window on Wednesday after the rate remained stagnant in the last five consecutive trading sessions of the unofficial market.

According to abokiFX.com, a website that collates parallel market rates in Lagos, the local unit closed at N517.00 per $1 on Wednesday, as against the N515.00 per $1 rate it traded in the past five market sessions respectively.

Wednesday’s performance represents a N2.00 or 0.40 per cent devaluation from the N515.00 rate it exchanged hands with the hard currency in the last five previous sessions simultaneously.

Similarly, the naira fell marginally against the U.S dollar at the official market (Nafex window) on Wednesday, as forex turnover remained unchanged from what it was in the previous session on Tuesday.

Data published on the FMDQ Security Exchange where forex is officially traded showed the domestic currency closed at N411.75 per $1 on Wednesday.

This implies a N0.25 or 0.10 per cent depreciation from the N411.50 rate it traded in the previous session on Tuesday.

The currency experienced an intraday high of N400.00 and a low of N412.85 during the trading session before settling at N411.75 at the close of business on Wednesday, the same range it oscillated in the previous session as well.

This became pronounced as the market forex turnover remained stable at $113.17 million, the same amount posted in the previous session on Tuesday.

The last time the naira closed at N411.75 on the dot was on June 16, two months ago.

The spread between the official and black-market rates is pegged at N105.25, leaving a margin of 20.40 per cent as of the close of business on Wednesday.