The foreign exchange (FX) market recorded N1,550 as the highest bid rate of the trading day, as the naira resumed its uncontrolled fall on Wednesday, following several months of stability.

According to data from the Central Bank of Nigeria (CBN), the naira experienced a modest depreciation of N2.53 after trading on Wednesday, as the dollar was quoted at N1,538.68 on the Nigerian Foreign Exchange Market (NFEM), a decrease from the N1,536.15 quoted the previous day.

On Wednesday, the dollar was quoted at the greatest rate of N1,550 by authorized currency dealers, a N10 depreciation from the N1,540 quoted on Tuesday.

On Wednesday, the market reached its lowest rate of N1,532 per dollar, a decrease from N1,520 on Tuesday.

The naira also experienced a depreciation against the dollar in the parallel market, which is commonly referred to as the “black market,” as a result of the increased demand for the greenback by end consumers. The naira closed at N1,585 per dollar, a modest decrease from the N1,580/$ closing rate on Tuesday.

On the illicit market, the naira also experienced a depreciation in comparison to other currencies.

On Wednesday, the pound was traded at N2,020, a decrease from N2,010 on Monday.

On Wednesday, the Euro was quoted at N1,690, a N30 decrease from the N1,660 per Euro quoted on Monday on the illicit market. Stable at N1,150, the Canadian dollar concluded its session.

Last week, the Naira experienced a decline in value against the US Dollar in both the official and parallel markets.

Despite the Central Bank of Nigeria (CBN) intervening to stabilize the currency, demand pressure was primarily driven by foreign investors who sought to relocate their funds offshore, according to analysts at Coronation Asset Management.