On Wednesday, the naira depreciated against the dollar after holding steady at N515/$ for the past week in the parallel market, also known as the black market.
Nigeria’s currency fell 0.39 percent at the end of the market to N517/$ on the black market as demand for dollars increased among end users who were unable to obtain dollars from the bank due to the documentation process.
Also on Trove, a fintech app used by Nigerians to buy foreign stocks whose account was recently frozen by the CBN, the exchange rate fell to N522 for a dollar. Depositors who use the app to buy shares of the NY Stock Exchange rely on this exchange rate to make conversions. On Bamboo, a similar fintech facing the same predicament, the exchange rate was N518.5/$1.
In the Investors and Exporters (I&E) Forex window, the naira weakened 0.06 percent as the dollar quoted at N411.75k/$ against N411.50k/$ which closed the previous day, data from the FMDQ.
Currency traders who joined the trading session on Wednesday maintained bids between N400.00k and N413.00k per dollar.