The naira had a turbulent trading week as the exchange rate to the dollar experienced sharp fluctuations in both official and parallel markets.
By the week ending December 13, 2024, the official exchange rate closed at N1,540/$1, marking a slight depreciation of 0.35% compared to N1,535/$1 recorded a week earlier, according to the Central Bank of Nigeria’s (CBN) currency tracker.
In the parallel market, the naira ended the week trading at an average of around N1,660/$1, according to Naijaonpoint’ market sources, rebounding from earlier lows of N1,750/$1 during intra-week volatility.
Some traders quoted higher while others also quoted lower
The CBN data revealed that the naira started the week stronger at N1,535/$1, gaining value to reach N1,525/$1 early in the week.
The parallel market, often seen as a barometer for the currency’s real demand, experienced even greater swings during the week.
Despite the gyrations in exchange rates, the CBN has yet to release official trading turnover figures for the week, leaving market observers with limited insight into the scale of dollar supply in the official market.
Analysts speculate that dollar liquidity remains constrained as businesses and individuals scramble to secure foreign exchange amid high demand.
The absence of turnover data adds to the uncertainty surrounding the currency markets and raises questions about the central bank’s ability to maintain stability.
Some BDC operators who spoke to Naijaonpoint earlier in the week opined the weakening was likely the handiwork of speculators who are holding strong despite the introduction of a more robust trading platform by the CBN.
The comments by Gwadebe followed the significant strengthening of the naira at both the official and parallel markets after days of appreciation since the apex bank introduced the EFEMS platform.