Naira weakened slightly against the United States dollar on the black market Tuesday, changing hands at N483 as Nigeria’s foreign exchange reserves declined by $452 million in almost one month with a balance of $35.211 billion as of 4th December.
The naira fell by N1 from the N482 at which it closed on Monday, representing a 0.21% decline, data from abokiFX.com, which collates parallel market rates, showed.
That leaves the gap between the parallel market rate and the official spot market also called the Investors & Exporters (I&E) window at 22.3%. Naira remained stable at the I&E window on Tuesday, closing at N395 after touching an intraday low of N408.18 and a high of N382.
On this side of the currency market, trade volume plunged by 16.15% from $110.23 million to $92.43 million.
According to the president of the Association of Bureau de Change Operators of Nigeria, Aminu Gwadabe, the crash in the value of naira derived from illicit activities like speculation, hoarding, illegal cash evaluations through Nigeria’s borders and the use of the greenback for gratification.
A shortage of dollar supply in at the CBN-controlled I&E window, where forex is cheaper, has driven manufacturers and investors to the black market, where they access the currency at a higher rate, putting pressure on the naira.
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