The naira on Thursday, depreciated to N1,200 to the dollar at the parallel section of the foreign exchange market, from N1,172 on Wednesday.
However, the local currency appreciated to N843.07 per dollar in the Nigerian Foreign Exchange Market (NAFEM).
Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N843.07 per dollar from N951.22 per dollar on Wednesday, indicating 11 percent or N108.15 appreciation for the naira.
Thus, the gap between the official and parallel market exchange rates widened to N356.93 per dollar on Thursday from N220.78 per dollar on Wednesday.
Mr. Yakubu Ahmed, a BDC operator told Vanguard newspaper that high demand for dollars still persists despite traders’ anticipation of a positive change in the trend of the foreign exchange rate.
“There is still high demand for dollars but little access to it. I sold a dollar today for N1,200 and bought for N1,180.
“Though we anticipate a positive change from the current trend of depreciation of the naira.
“But most traders are still worried that the naira might be in a falling trend for a long period due to decline in foreign exchange inflows which is also affecting the official market.”
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