Bureau de Change operators reported that the Nigerian naira traded at 1,185 to the US dollar on the parallel market on Wednesday, reflecting ongoing liquidity challenges.

While this represented a slight improvement compared to the 1,190/$ rate observed on Tuesday, the local currency was still struggling to reach its actual value.

According to data from AbokiFX, the naira’s exchange rates on Wednesday were as follows: 1,170/$ and 1,175/$ for buying and selling, 1,510/£ and 1,550/£ for the British pound, and €1,280 and €1,300 for the euro.

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Jubril Mutiu, a BDC operator, commented on the situation, stating, “We sold the naira at 1,185/$ today, it was 1,190/$ yesterday; we are buying at 1,175/$ today.”

Another BDC operator, Ismail Ahmed, mentioned the scarcity issue, noting that they were buying and selling at 1,180/$ and 1,200/$. He added that the rates had increased due to scarcity, although it was cheaper over the weekend.

The previous week, the naira reached a high of 1,310/$ on Tuesday but closed at 1,150/$ on the parallel market by Friday.

The Association of Bureau de Change Operators of Nigeria (ABCON) acknowledged the recent gains and suggested steps to sustain them.

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The President of ABCON, Dr. Aminu Gwadabe, emphasized the importance of democratizing and centralizing the foreign exchange market while leveraging the moderating and correcting roles of BDCs.

On the Investor & Exporter forex window, the naira began trading at 798.75/$, reaching a high of 1,101/$ before closing at 786.02/$ on Wednesday.

The official trading platform recorded a closing rate of 905.75/$ on Tuesday, according to figures from the FMDQ. The I&E window’s total turnover at the end of Wednesday trading was 105.98 million.

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Analysts at Cordros Research noted the limited incentives for holding the naira, along with panic buying due to expectations of further currency pressures and limited FX supplies.

As a result, they anticipated ongoing exchange rate pressures in the short term, unless significant FX inflows or effective actions by policymakers are implemented to address the situation.