The naira declined to N1,450 at the parallel section of the foreign exchange (FX) market on Wednesday.

The current FX rate represents a 1.4 percent depreciation from the N1,430 traded on May 6.

Currency traders, also known as bureau de change (BDC) operators, put the buying rate of the greenback at N1,410 and the selling price at N1,450 — leaving a profit margin of N40.

At the official window, the local currency depreciated by 1.98 percent to N1,421.06 on May 8 — from N1,416.57 on May 7.

During trading, the dollar recorded a high of N1,440 and a low of N1,335, according to data from FMDQ Exchange, a platform that oversees FX trading in Nigeria.

On May 7, the Central Bank of Nigeria (CBN reviewed its directive on the repatriation of export proceeds by international oil companies (IOCs).

Earlier in February, the regulator had placed limits on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts as part of reforms to curb the volatility in the FX market

The CBN had said the transfer of funds by the IOCs has an impact on liquidity in the domestic FX market, hence the need for the measures to reverse the trend.

“The initial 50% of the repatriated proceeds can be pooled immediately or as at when required. Banks may submit the request for cash pooling ahead of the expected date of receipt, supported by the required documentations, for approval by the Central Bank of Nigeria,” the CBN said, announcing the policy review.

“The 50% balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria, whenever required, during the prescribed 90-day period.”

The apex bank said the IOCs can also utilise the balance for cash calls, domestic loan principal and interest payments, transaction taxes (including Nigerian Content Development (NCD) levy, education tax, and forex sale at the FX market.