Naira falls against dollars on Wednesday

Naira put up a poor performance against the dollar at the Investors and Exporters (I&E) window on Wednesday as trading closed at N394.17k per dollar.

This represents a 0.21 percent drop or 82 kobo loss when compared to the N393.35k per dollar that it exchanged for on Tuesday, according to data from FMDQ Securities Exchange Plc.

Although, at the black market, Naira remained steady in value to the dollars at N475/$ after two days trading.

According to analyst, the depreciation of dollars in the official market was attributed to strong demand for dollar by the end-users to meet their obligations.

Similarly, data from FMDQ Securities Exchange Plc shows that forex turnover rose to $89.50 million on Wednesday from $26.83 million recorded on Tuesday.

Read also: Naira gains more grounds as CBN records unpurchased dollars return

This suggests an increase in dollar inflow from Foreign Portfolio Investors (FPIs).

The chairman of the Presidential Economic Advisory Council on the market, Doyin Salami, wants Nigeria to develop a forex policy that allows the economy to grow.

For the past 10 months, the foreign exchange market has been under pressure following a sharp drop in oil prices occasioned by the COVID-19 pandemic.

The Central Bank of Nigeria had in the last weeks moved to clear the huge backlog of foreign exchange demand.

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