By The market for foreign exchange (Forex) in Nigeria is facing increased pressure due to the increasing scarcity.
Demand pressures, which have been intensifying since August, have consequently forced a significant depreciation of the Naira to N1,660 per dollar on the black market. The market concluded last weekend at a high of N1,645 per dollar, which was much higher than the N1,625 it closed at the week before.
Dealers blamed the devaluation on the reduction in the amount of foreign exchange moving into the market’s parallel segment, which started last month.
The amount of forex supplied at the official market sector has significantly decreased.
From $254.17 million moved over the weekend to $197.37 million yesterday, the amount of dollars transacted (turnover) in the market fell by 22%.
However, in the Nigerian Autonomous Foreign Exchange Market, or NAFEM, the value of the Naira increased to N1,580.46 per dollar.
The indicative exchange rate for NAFEM dropped to N1580.46 per dollar from N1,593.32 per dollar last weekend, according to data from FMDQ, showing a N12.86 appreciation for the naira.
As a result, on Friday of last week, the difference in value between the NAFEM rate and the parallel market increased to N79.54 per dollar from N51.68 kobo per dollar.
