The naira depreciated further against the US dollar on Wednesday as tightening foreign exchange liquidity continued to pressure the official market. New FX data released by the Central Bank indicated that the exchange rate reached an intraday high of N1,460.50/$, reflecting intensified scarcity as demand far outstripped available supply.
Some transactions were concluded at an intraday low of N1,449.96/$, around N10 weaker than the previous day’s low, highlighting persistent volatility.
Over the last 10 days, the naira has lost N18 per dollar, affecting companies settling foreign obligations or seeking to acquire FX for asset purchases.
At the close of trading, the local currency slipped 0.46% to N1,454.18/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM). In the parallel market, the naira traded at N1,474/$, down 0.27%, indicating a subdued appetite for the domestic currency.
Analysts noted that the FX market continues to grapple with significant supply constraints, resulting in declining transaction values and rising pressure on businesses dependent on foreign currency.
