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Home » Dollar hits N1,155 on black market

Dollar hits N1,155 on black market

The pressure on the foreign exchange (FX) market worsened on Thursday as one dollar was quoted at N1,155, the lowest ever on the black market, known as the parallel market.

In some parts of Abuja, dollars traded at the rate of N1,150, in Lagos some traders sold at N1,155 and in other areas at N1,120/$1.

This implies that in less than 12 hours, naira has depreciated by 5 percent (N55) from N1,100/$1 closed on Wednesday.

The combination of demands from 43 items restored to access foreign exchange and demands for school fees, among others, drove the sharp fall in the value of naira in two days.

Read also: Why naira fell sharply across FX markets

The pressure on the FX market intensified on Tuesday and Wednesday as naira fell to lowest across market segments on strong demand after the Central Bank of Nigeria (CBN)’s move for a single forex market rate.

However, the Naira strengthened against the dollar at the official market, gaining 6.77 percent despite declined liquidity in the market on Wednesday.

At the close of trading on Wednesday the dollar was quoted at N790.68, which was weaker than N848.12 quoted on Tuesday at Investors’ and Exporters’ (I&E) forex window, data from the FMDQ showed.

The daily FX market turnover, which reflects the level of transaction or inflows in the market, declined by 47.96 percent to $69.88 million on Wednesday from $134.28 million recorded on Tuesday.

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