The Nigerian naira continued to lose value against the US dollar at the Investors and Exporters (I&E) window on Wednesday, August 23, 2023. The local currency closed at N773.42 to the dollar, representing a 0.35 per cent depreciation from N770.72 on Tuesday.
According to data from the FMDQ Securities Exchange, the naira opened at N781.49 to the dollar on Wednesday, which was also the highest rate recorded during the day. The lowest rate was N738 to the dollar, indicating a wide gap between the bid and offer rates.
The total turnover at the I&E window was $169.07 million, a slight increase from $165.83 million on Tuesday. However, this was still below the average daily volume of $200 million recorded in July.
The naira has been under pressure in recent weeks due to low supply of foreign exchange from official sources and high demand from importers and investors.
The Central Bank of Nigeria (CBN) has been intervening in the market to support the naira, but its efforts have not been enough to meet the demand.
The naira has depreciated significantly against the dollar on the parallel market in recent days. The naira traded at N910/$ on Wednesday, August 16, 2023, at the black market.
Foreign exchange dealers were buying dollars at N880 while selling at N910, according to data by AbokiFX, an online platform that tracks the exchange rate on the parallel market.
This new level shows a remarkable gain when compared to the preceding day when dealers bought it at N932 and sold at N942.
The pressure on the naira has been cooling since the start of this week following the Central Bank of Nigeria’s (CBN) announcement of plans to boost dollar supply in coming weeks.
The CBN has been trying to unify the multiple exchange rates in the country and improve transparency in the foreign exchange market. However, analysts have said that more reforms are needed to boost confidence and attract foreign inflows into the economy.
