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.
An earlier article by Nairametrics quoted the exchange rate at around N1,685/$1, however, quotes quickly depreciated as business activities resumed fully.
Checks by Nairametrics as of 10am Wednesday, December 11 show several 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.
They believe that the increasing disparity between the official and black market rates could lead to more challenges for the economy as it may encourage more speculation and hoarding of foreign exchange. This could potentially lead to further depreciation of the naira in the black market.
