The exchange rate between the naira and dollar slid back to around N1,745/$1 on the parallel market a sharp reversal from the sub N1,600 levels recorded at the end of last week.
The exchange rate opened at around N1,685/$1, however, quotes quickly depreciated as business activities resumed fully.
As of 10 am on Wednesday, several traders quoted rates above the N1,700/$1 mark suggesting that the gains seen last week may have been a “dead cat bounce” a market terminology for temporary gains.
Some P2P exchanges quoted N1,715/$1 while some IMTOs checked quoted N1,745. Stock trading apps like Bamboo and Trove are quoted for N1,730/$1 and N1,736/$1 respectively.
Meanwhile, the exchange rate between the naira and dollar in the official market closed at around N1,525/$1 on Tuesday the strongest close since the EFEM was introduced.
Thus, the disparity between the official and black-market rate has now widened to about N200 creating fear of a disconnect between the central bank-managed official market and the parallel market where most retail trades occur.
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Meanwhile, as of the close of trading on Wednesday the exchange rate in the official market weakened marginally to N1,545/$1 from N1,525 a day earlier. However, parallel market rates continued to trade for between N1730-N1740/$1.
Some BDC operators who spoke to Nairametrics suggest the weakening is likely the handiwork of speculators who are holding strong despite the introduction of a more robust trading platform by the CBN.
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, had warned that forex speculators will resist the rapid appreciation of the naira to cover their losses.
Gwadebe had urged the CBN to keep the momentum, discourage the illegal act of speculation and currency substitution as well as engage the BDC operators where volatility is pervasive. The comments by Gwadebe followed the significant strengthening of the naira at both the official and parallel markets after days of appreciation since the apex bank introduced the EFEMS platform.
