Naira weakens against dollar on black market amid liquidity drop

Before inching up to close at a peak rate of N386, the exchange rate had reached an intraday low of N384.
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Naira weakened against the United States dollar

On Wednesday, Naira weakened on the parallel market against the United States dollar, closing at N464, 0.23 per cent lower than the N463 it traded for in the previous session, data from abokiFX, which collects prices from informal traders, showed.

Within a week in September, following the implementation of import and export policies by the Central Bank of Nigeria (CBN), it had appreciated by as much as 7.8 per cent in this segment of the forex market, aimed at reducing high forecast demand and stimulating dollar supply.

Following nationwide protests against police violence, which forced companies to shut down after state governments declared a curfew to contain escalating tensions, liquidity in the currency market has been under strain.

Meanwhile, on the over-the-counter spot market, also known as the Investors and Exporters (I&E) forex window, Naira remained steady against the greenback, closing at N386 a dollar, the same rate at which it closed on Tuesday.

According to FMDQ Securities Exchange figures, the opening indicative rate was N386.05 to a dollar, 5 Kobo less than the N386 reported on Tuesday.

Before inching up to close at a peak rate of N386, the exchange rate had reached an intraday low of N384.

Trade value rose to $169.93 million last week, $34.5 million higher than the scale of trade in the previous week.