Naira weakened further on Wednesday, depreciating 0.11% against the U.S. dollar to its lowest level at the spot market.
This occurred as foreign exchange turnover suddenly increased to 30.4% from $63.05 million posted on Tuesday.
According to data recorded on FMDQ website, where forex is officially traded, before the close of trading on Wednesday, the local currency opened at N431.88 per $1 but closed at N436.50, depreciating 0.11% from N436.00 it traded in the last session.
With this, the naira has depreciated 0.4% in the past three business days consecutively.
Naira traded within an intraday range of N437.50 (low) and snowballed to a high of N418.00 before closing at N436.50 per $1 which is the lowest official market rate the Naira has ever reached at the NAFEX window.
Within the past weeks and months, the Naira has lingered within the market range of N419.00 and N430.00 and above mark, amidst lingering inflationary pressures, high increase in forex demands and depleting foreign reserves.
The Naira also weakened against dollar on Wednesday because of the rising demand and scarcity of the greenback currency in circulation.
At the Uyo black market currency dealers exchanged the dollar at N700.00 and sold within the range of N703.00 and N705.00 to a dollar on Wednesday.
A currency dealer at Uyo Udi market said, “The market scattered today, we had high demands but there is scarcity of dollars. Banks are not selling to us as we want. They are not paying customers the quantity dollars they are demanding, that’s why we have this scarcity.”
Abuja black market currency dealers also said they bought the dollar at N698.00 and sold N700.00 to a dollar on Wednesday.