Naira loses nearly fifth of its value, as fresh details emerge for black market rate

THE naira lost nearly a fifth of its value as it traded at N951.2/$ on the official Investor and Exporter forex window on Wednesday.

Data from FMDQ Securities Exchange highlighted that the naira lost N144.5 against the greenback after closing trading on Tuesday at N806.7/$

The naira’s volatility in the market continued despite efforts by the Central Bank of Nigeria to stabilize the national currency.

The bears have all to play for if the naira loses the psychological support level of N1000/$ at the official market, as such a breach will likely lead to more losses for the local currency

The delay in FX support from Nigeria’s foreign partners has also resulted in the naira losing face in the official market.

Price action indicators have enough areas to move in the naira’s direction away from strong oversold levels in the official FX market.

Moreover, if the opposite happens such as the apex bank getting the much-needed FX liquidity support, the naira may find an opportunity to bounce higher and break the N900 resistance level

The local currency has been drifting towards the parallel market level as the central bank has yet to clear outstanding foreign currency amounts owed in forward deals.