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Naira falls to a 3-year low at the black market as liquidity crisis worsens 



Adebayo Obajemu

It was another low yesterday as Forex turnover at the Investor and Exporters (I&E) window continued with its downward dip on Wednesday, July 1, 2020, as it dipped disappointingly by 28% day on day.

According FMDQOTC data gleaned by this newspaper, forex turnover fell from $14.37 million on Tuesday, June 30, 2020, to as low as $10.37 million on Wednesday, July 1, 2020, representing a 28% drop on a day-to-day basis. The new developnment is a second consecutive day of fall this week and also the lowest turnover recorded in the I&E window since last week.

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This further reinforces the volatile and uncertain nature of the foreign exchange market with trading volumes apparently irregular and piling pressure on the exchange rate at the NAFEX market and by extension the parallel market.

It would seem the current volatile nature of the forex market would linger for a long time due to liquidity shortages across markets.  Liquidity remains quite tight in the foreign exchange market, with the average turnover in the I&E market significantly low.

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