The Naira took a significant hit on Thursday as it declined by 3.32 percent to N762.71 per dollar on a weaker-than-expected liquidity level at the official foreign exchange (FX) market.

The Investors’ and Exporters’ (I&E) forex window reported a 49.58 percent decrease in transaction volume, plummeting from $170.15 million on Wednesday to $85.79 million on Thursday.

Following the day’s trading, the official FX market data from the FMDQ showed that the dollar was quoted at $762.71 per Naira, compared to the previous day’s rate of N738.18.

FX dealers maintained bids as high as N799.90 per dollar on Thursday, which was slightly stronger than the N800 per dollar bid on Wednesday. On the lower end, they bid at N720 per dollar, down from N701 per dollar recorded on both Wednesday and Tuesday.

In the parallel market, commonly referred to as the black market, the Naira remained stable, trading between N920 and N925 in various street trading areas across the country.

In other financial market news, the Overnight (O/N) rate in the money market decreased by 0.40 percent, closing at 2.60 percent compared to the previous day’s 3.00 percent.

The Open Repo (OPR) rate also saw a decline of 0.68 percent, closing at 1.90 percent, down from 2.58 percent the day before, according to a report by FSDH Research.

The Nigeria Treasury Bills (NT-Bills) secondary market exhibited a flat performance on Thursday, with the average yield across the curve remaining unchanged at 6.72 percent.

This stability extended to short-term, medium-term, and long-term maturities, which recorded average yields of 3.12 percent, 5.82 percent, and 9.43 percent, respectively.

The report highlighted that the FGN bonds secondary market closed on a mildly positive note. The average bond yield across the curve dipped slightly by 2 basis points, ending at 14.20 percent compared to 14.22 percent the previous day.

Among the notable performers in the bond market, the March 23, 2025 maturity bond saw the most significant yield decrease of 38 basis points, while the April 27, 2032 maturity bond experienced a yield increase of 14 basis points.

Despite these fluctuations, market observers are closely monitoring the Naira’s performance as it faces ongoing challenges amid changing economic conditions.