Liquidity on Nigeria’s foreign exchange market has been declining this week after offshore funds shifted dollars into the market last week to buy treasury bills banks on Wednesday failed to match bids due to higher offers, two traders said.
Traders said investors exchanged $102.75 million on Tuesday, down from $125 million on Monday and $131 million on Friday. Wednesday’s volume is yet to be released, though traders expected it to close lower.
Offshore funds were offering to sell the dollar at 365 naira on Wednesday, close to rates on the black market of 367. Meanwhile local banks were bidding to buy at 359, the two traders said.
