Naira Reverses Earlier Gains, Drops to N1,745/$1

The Naira has suffered a fresh setback, reversing its recent gains and sliding back to around N1,745/$1 on the parallel market.

The sharp reversal comes after the naira had briefly touched sub-N1,600 levels at the end of last week.

The exchange rate had earlier been quoted at around N1,685/$1. However, as business activities resumed fully, quotes quickly depreciated, suggesting that last week’s gains may have been a temporary respite, or “dead cat bounce.”

As of 10 am on Wednesday, December 11, Nairametrics reported that some P2P exchanges quoted N1,715/$1, while some IMTOs quoted N1,745. Stock trading apps like Bamboo and Trove quoted N1,730/$1 and N1,736/$1, respectively.

In contrast, the exchange rate between the naira and dollar in the official market closed at around N1,525/$1 on Tuesday, its strongest close since the EFEM was introduced.

Meanwhile, BDC operators attribute the naira’s weakening to speculators who continue to exert pressure despite the introduction of a more robust trading platform by the Central Bank of Nigeria (CBN).