According to new reports, the value of the naira has fallen slightly once more.
At the investors and exporters (I&E) window on Tuesday, the naira fell by 5.96 percent to close at N788.42/$.
The I&E window is the country’s true swapping scale window.
The Nigerian naira closed trading at N788.42 per US dollar, according to data from FMDQ Securities Exchange, a platform that oversees foreign exchange (FX) trading in Nigeria. The naira reached intraday trading highs of N803 and lows of N730.
On Tuesday, the FMDQ offered an opening rate of N764.42 per dollar.
The I&E window recorded trades with a total value of $68.10 million.
Similarly, on Wednesday, the local currency decreased to N810 per dollar at the parallel market.
Last Friday, the currency was sold at the parallel market for N793/$.
On Wednesday, Bureaux De Change (BDC) operators in the Ikeja area of Lagos told TheCable that they buy the dollar for N800, gain N10, and then sell it for N810.
The parallel market, also known as the black/parallel market, accounts for less than one percent of forex transactions and should never be used to determine the exchange rate, according to the Central Bank of Nigeria (CBN).
The apex bank unified all FX market segments last month, signaling the naira’s floating.
Bloomberg was recently informed by traders that the CBN is intervening in the markets to prevent further currency losses.
According to the news agency, some traders claimed that the CBN’s interventions were preventing fluctuations in the value of the naira, but that dollar sales had been insufficient to support the claim that the local currency would be pegged back.
According to a note that was written by RMB analysts, “the market expects the Central Bank of Nigeria to intervene more than once this week given the size of intervention yesterday and the current demand across the market.”
“The central bank has been intervening into the market over the last two weeks or so to support liquidity, but this has not been very consistent,” stated Ayodeji Dawodu, director at UK-based BancTrust & Co. Investment Bank.
“Trades are reportedly being carried out between 700 and 800 naira per dollar, which does not appear to indicate controls,”