The naira traded largely flat on Wednesday in the official foreign exchange (FX) market despite weaker liquidity, as the International Monetary Fund (IMF) endorsed Nigeria’s flexible exchange rate regime and urged authorities to eliminate the remaining restrictions in the market.
Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated marginally by N1.50 against the dollar, with the currency quoted at N1,362.05 on Wednesday compared to N1,360.55 on Tuesday at the Nigerian Foreign Exchange Market (NFEM) window.
The slight depreciation came amid reduced activity in the official market. Total turnover at the NFEM window declined by 46.88 percent to $75.37 million on Wednesday from $141.89 million recorded on Tuesday, reflecting softer demand and supply conditions. The number of deals at the NFEM window rose by 20.83 percent from 266 on Monday to 336 deals.
Market activity also weakened in the interbank segment. The number of deals fell by 25.34 percent to 109 transactions from 146 recorded a day earlier. However, interbank turnover rose sharply to $857.67 million, representing an 829.72 percent increase from $92.25 million on Monday, according to CBN data.
In the parallel market, also known as the black market, the naira remained unchanged at N1,400 per dollar. This left the gap between the official and parallel market rates at about N38 per dollar.
