Nigeria’s currency, Naira on Thursday depreciated to N1,175 per dollar in the parallel market, from N1,100 per dollar on Wednesday.
However, the Naira appreciated in the Nigerian Foreign Exchange Market (NAFEM) same Thursday to N782.68 per dollar.
Data from FMDQ, the budding financial market infrastructure group, showed that the indicative exchange rate for NAFEM fell to N782.68 per dollar from N790.68 per dollar on Tuesday. This indicated N8 appreciation for the Naira.
FMDQ also noted that the volume of dollars traded in NAFEM rose by 39 per cent to $97.47 million from $69.88 million on Wednesday.
Consequently, the gap between the official and parallel market exchange rates widened to N392.32 per dollar on Thursday, from N309.32 per dollar on Wednesday.
Since the CBN last week announced the lifting of the forex restriction placed on 43 items on the official market, the nation’s currency has been under intense pressure.
The central bank had said it would intervene in the foreign exchange market occasionally to boost liquidity, after ending the eight-year ban on the 43 p items that were restricted from accessing dollars on the official market.
The apex bank in June 2015, had initially included 41 items to the list of commodities which were not-valid to purchase FX from the market, citing the need to conserve the scarce forex and encourage domestic production for self-sufficiency and exports.
The list was thereafter expanded to 43 items.Some of the items listed then as not-fit-for forex included rice, cement, margarine, palm kernel products and vegetable oil, meat and processed meat products, vegetables and processed vegetable products, poultry chicken, private airplanes, tinned fish in sauce, roofing sheets wheelbarrows, head pans, among others.
However, in last week’s statement, the CBN Director, Corporate Communications, Dr. Isa AbdulMumin, said the central bank would continue to promote orderliness and professional conduct by all participants in the FX market segment to ensure that market forces determine exchange rates on a Willing Buyer – Willing Seller principle.
