Naira extended losses on the spot market to trade at N465.13 per $1 on Wednesday amidst rising debt profile.

Naira fell further against the United States dollar on the spot market (a market where financial instruments are usually exchanged 'on the spot') on Wednesday, extending the local currency's depreciation run at the segment to three days this week.

According to data published by FMDQ, where forex rates are collated and traded officially, the naira opened at N463.79 per $1 but declined further to close at N465.13 to a dollar on Wednesday.

The rate translated to a N0.46 or 0.1 per cent depreciation from N464.67 per $1 it exchanged for in the previous session on Tuesday.

Within the business period on Wednesday, Naira hit a low of N466.89 and experienced a high of N460.00 before closing at N465.13 per $1 at the close of sales, the FMDQ data revealed.

According to the data, the segment experienced a Forex turnover of $267.04 million on Wednesday, leaving a total debt market size of N32.43 trillion. A 0.03 per cent increase from N32.42 recorded on Tuesday.

Meanwhile, the International Monetary Fund (IMF) on Monday, attributed the surging public debt profile in Nigeria and other Sub-Saharan African countries to weaker currencies across the region.

In a blog post published on the IMF's website on Monday, the fund noted that sub-Saharan African currencies have weakened against the US dollar

with an average depreciation of 9 per cent since January 2022.

"Most sub-Saharan African currencies have weakened against the US dollar, fanning inflationary pressures across the continent as import prices surge. This, together with a growth slowdown, leaves policymakers with difficult choices as they balance keeping inflation in check with a still-fragile recovery," the IMF said.

At the parallel market on Wednesday, currency dealers said the dollar was exchanged at N746.00 per $1 and sold for N750.00 on Wednesday at Uyo.