Naira gains against the dollar on black market as fx turnover rises by 1133%

Naira appreciated against the United States dollar on the black market on Wednesday, exchanging for N477/$1. The exchange rate at the previous session had stood at N480 to a dollar according to AbokiFx, which collates rates from various street traders.

Foreign exchange turnover at the over-the-counter spot market, also known as the Investors and Exporters (I&E) window, jumped to $227.29 million, the biggest single-day volume in more than two months.

The turnover translated to a 1132.6% increase over the $18.44 million turnover of the previous trading session.

However, the naira depreciated against the dollar at the I&E window to N386, 2 kobo weaker than the N385.98 reported on Tuesday. The greenback touched an intraday high of N386 and a low of N380.

The opening indicative rate was N386.34 to a dollar, representing a 31 kobo drop relative to the N386.03 to a dollar recorded at the session before.

Last week, the average daily forex sale was around $24 million, representing a substantial fall from $50.6 million that was recorded the previous week.

The Wednesday turnover marked the first time trade volume at the I&E window would hit $200 million since January.