Naira plunges by 1.48% despite surge in Dollar liquidity

By Sodiq Adelakun

Despite increased dollar liquidity at the official foreign exchange market, the Nigerian Naira fell by 1.48% on Wednesday.

At the close of trading on the Investors’ and Exporters’ forex window, the dollar was quoted at N756.21, weaker than the N745.19 quoted on Tuesday.

This depreciation in the Naira was due to increased demand for dollars, despite a slight increase in FX liquidity.

The daily foreign exchange market turnover also increased by 17.97 percent to $95.70 million on Wednesday. However, the demand for dollars was not met, leading to the Naira’s depreciation.

At the parallel market, the Naira strengthened against the dollar, closing at N1,000 on Wednesday, gaining N5 over the morning trading.

On Tuesday, the Naira had gained 0.79% (N8) against the dollar as the foreign exchange market resumed after the independence holiday.