The naira has fallen against the U.S. dollar at both the official and parallel market, marking a sharp reversal from the temporary gain achieved last week.
Data from the NAFEM where forex is officially traded, showed that the domestic currency depreciated 0.55% to close at N874.71 to a dollar at the close of business on Wednesday.
This represented an N4.8 loss or a 0.55% decline in the local currency compared to the N869.91 it closed on Tuesday.
The intraday high recorded was N1097.50/$1, while the intraday low was N745.00/$1, representing a wide spread of N352.50/$1.
According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $223.52 million, representing a 60.1% increase compared to the previous day.
The naira also weakened at the parallel forex market where forex is sold unofficially, the exchange rate depreciated, quoted at N1130/$1, while peer-to-peer traders quoted around N1110.10/$1.
Reacting, the Association of Bureau de Change Operators of Nigeria warned those speculating against the naira to be wary.
The President of ABCON, Aminu Gwadabe who gave the warning, noted that the Central Bank of Nigeria was set to inflict pain on currency speculators.
“What is happening in the market and the continuous naira rebounds are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.
“It is a good development as it is the greatest risk to speculate, hoard, and substitute naira for other currencies,” Gwadabe said.