Naira’s value weakens as dollar sales by deposit money banks and other entities at the Nigeria Autonomous Foreign Exchange (NAFEX) Market dropped by $252m to $84.1m on Friday.
This represents a 74 percent drop from the $331.1m transactions was recorded at the official Nigeria Autonomous Foreign Exchange on Thursday.
Naira depreciated to N1537/$ on Friday from N1,498/$ recorded at the close of trading activity on Thursday at the official market.
At the parallel market, on Friday, the naira also depreciated to N1670/$ from N1600/$ recorded on Thursday amid a demand for the steady greenback.
An analysis from the Financial Market Dealers Quotation (FMDQ) for the weekend showed that the forex supply started on a low at $116.11m on Monday, it increased by $292.3m to $381.93m on Tuesday but dropped to $117.87m on Wednesday. On Thursday, the supply increased to $336.11m.
Nevertheless, despite the Central Bank’s efforts to boost forex supply through various policy interventions, challenges persist in the forex market.
The gap between the dates in the official market and parallel market is once again widening, raising concerns about the resurgence of the activities.
