The Naira has lost the massive gain recorded last week as it is now trading at approximately N1,745 to a dollar on the parallel market.
It would be recalled that the naira firmed up massively against the dollar last week with the dollar weakening to about N1,550 at a point.
As of 10 a.m. on Wednesday, December 11, checks by Nairametrics revealed several rates above the N1,700/$1 mark, raising concerns that last week’s gains may have been a “dead cat bounce,” a market term for short-lived recoveries.
On peer-to-peer (P2P) exchanges, rates were quoted at N1,715/$1, while some International Money Transfer Operators (IMTOs) listed rates at N1,745/$1.
In contrast, the official exchange rate for the naira closed at approximately N1,525/$1 on Tuesday, the strongest level since the introduction of the Enhanced Foreign Exchange Market (EFEM).
This has widened the disparity between the official and parallel market rates to about N200, sparking fears of a growing disconnect between the central bank-regulated official market and the parallel market, where most retail transactions take place.
