Traders Blame Speculators As Naira Falls To N1,710/$1 After Gains

The naira rescinded its last week’s gain, continuing with the depreciation which it began this week as the gap between the official and parallel market rates widened.

The value of the naira had depreciated at both the official and parallel markets.  At the close of business on Wednesday, the value of the naira on the streets had declined to N1,710 to the dollar compared to N1,591 which it closed last week, a 7.5 per cent depreciation in three days.

On Wednesday, the local currency depreciated for the second straight time since the launch of EFEMS to N1,665 per dollar, losing N85 from N1,580 quoted on Monday, in the black market.

On the Central Bank of Nigeria Electronic Foreign Exchange Matching System (EFEMS), the value of the naira which had appreciated to N1,525 to the dollar on Tuesday had weakened by the close of trading on Wednesday to N1,545.

Increased inflow of foreign exchange had seen the value of the naira appreciate at the official window from N1,538.5 to the dollar on Monday to N1,525 to the dollar Tuesday.

Data from the FMDQ showed that turnover rose to $401.17 million as intraday trades were between N1,610 and N1,440 to the dollar. At the EFEMS, trades were between N1,557 and N1.515 total.

Meanwhile, some P2P exchanges quoted N1,715 to the dollar while some IMTOs quoted N1,745. Stock trading apps like Bamboo and Trove quoted for N1,730 and N1,736 to the dollar respectively.