Forex turnover declined by 21.45% to $181.30 million as the Nigerian naira depreciated against the dollar on Wednesday, 20th December 2023, closing at N854.61/$1 at the official market.
The domestic currency depreciated 1.5% to close at N854.61/$1 to a dollar at the close of business on Wednesday, data from the NAFEM where forex is officially traded, showed.
However, the naira appreciated at the parallel forex market where forex is sold unofficially, the exchange rate appreciated by 0.24%, quoted at N1238/$1, while peer-to-peer traders quoted around N1187.30/$1.
The former President and Chairman governing council of, the Chartered Institute of Stockbrokers (CIS) and the Managing Director, of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe in an exclusive chat with Naijaonpoint said for the exchange rate to be stable, market and participants confidence is key.
Managing Director/CEO, of Financial Derivatives Company Limited, Bismarck Rewane had said in a report that the naira is expected to remain volatile on lingering forex supply concerns.
The dollar dearth means speculative buying is likely to continue, with an increasing number of market participants taking long positions on the dollar while shorting the naira.