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Naira Plummets in Official Forex Market

July 10, 2024

Credit: Bloomberg

The Naira has continued to be in free fall against the Dollar in the foreign exchange market regardless of the increase in FX transaction turnover.
Data from FMDQ showed that the Naira dropped to N1532.58 against the Dollar on Tuesday from N1523.85 traded on Monday, representing an N8.73 depreciation against the Dollar compared to the N1523.85 traded on Monday.

Naira Plummets in Official Forex Market — A man counts Nigerian naira notes in a marketplace as people struggle with economic hardship and cashflow problems ahead of Nigeria’s presidential elections in Yola, Nigeria, on February 22, 2023. REUTERS/Esa Alexander

The depreciation comes regardless of the surge in foreign currency transaction turnover, which was $188.19 million on Tuesday from $133.46 million on Monday.
The Naira also dipped at the parallel foreign exchange market to N1540 on Tuesday from N1530.
The Nigerian currency lost N22.91 and N15 at both the official and parallel foreign exchange markets from last Friday to Tuesday despite the increase in Nigeria’s external reserves to $34.66 billion as of June 4, 2024.