Eko Hot Blog reports that the naira gained slightly against the dollar on the Nigerian Autonomous Foreign Exchange (NAFEX) market on Wednesday, closing at N1,542.58/$ from N1,551/$ on Tuesday.
EDITOR’S PICKS
- Full List Of AFCON Awards As Ekong Wins Player Of The Tournament
- REVEALED! How Model Of Aircraft Carrying Wigwe, Wife, Son Crashed Multiple Times In 2023
- Tinubu Meets Tijaniyya Leader, Khalifa Muhammad Mahe Niass In Aso Rock (Photos)
This represents a 2.9% appreciation from Monday’s rate of N1,598.54/$, according to data from the FMDQ Securities Exchange.
The foreign exchange turnover increased to $172.14 million on Wednesday, up from $66.43 million on Monday and $117.32 million on Tuesday. Banks sold approximately $172 million on Wednesday, about 47% more than Tuesday’s $117 million.
While banks dominate forex sales on FMDQ, the Central Bank of Nigeria (CBN) and multinationals, especially oil firms, also participate. However, the closing NAFEX rate further widened the gap between official and parallel market rates to over N300.
On Wednesday, the naira fell to N1,900/$ on the parallel market, fueling concerns over round-tripping. Bureau de Change operators predicted the currency could reach N2,000/$ by next week amid high dollar demand.
The CBN and Economic and Financial Crimes Commission (EFCC) are battling currency speculators to restore exchange rate stability and boost forex liquidity. The EFCC raided the Wuse Zone 4 market on Wednesday searching for speculators.
President Bola Tinubu said his administration is working to raise $10 billion to increase liquidity and stabilize the naira. The CBN has introduced various policies, like ordering banks to sell excess dollar stock, to boost supply.
However, analysts faulted the huge intra-day gap between N1,755/$ and N1,050/$ on NAFEX, saying it indicates a need for more transparency. Bureau de Change Association President Aminu Gwadabe said FMDQ, 90% owned by banks, needs more disclosure on who is trading.
FURTHER READING
- Tinubu Not Cause Of The Hardship In Nigeria, I Will Not Join Others To Criticise Him – Sanusi
- BREAKING: Cote d’Ivoire Beats Nigeria’s Super Eagles, Wins AFCON Trophy
- UK Minister, Kemi Badenoch Arrives Nigeria For 3-day Visit
Cowry Asset CEO Charles Sanni said the abnormal gap shows poor forex supply amid high demand. The CBN declined to comment on publishing buyer and seller details.
Click to watch our video of the week
Discover more from EkoHotBlog
Subscribe to get the latest posts sent to your email.
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
![](https://i0.wp.com/www.ekohotblog.com/wp-content/uploads/2021/10/AdvertEKOHOT-1024x1024.jpeg?resize=1024%2C1024&ssl=1)