Business
Naira Depreciates Against the Dollar in Both Official, Parallel FX Markets
The naira continued its downward slide against the dollar on Tuesday, showing a notable depreciation in both official and parallel foreign exchange markets.
According to data from FMDQ, the naira weakened to N1689.88 per dollar on Tuesday, down from N1681.42 on Monday, reflecting a N8.42 drop. Similarly, in the black market, the naira lost N5, closing at N1740 from N1735 the previous day.
This decline comes amid a sharp drop in FX supply turnover, which fell to $106.44 million on Tuesday, down from $471.5 million recorded on Monday.
BMI, a subsidiary of Fitch Solutions, has projected that the naira could fall to N1,993 per dollar in the coming days.
This depreciation is occurring despite an increase in Nigeria’s foreign exchange reserves, which rose to $40.167 billion as of November 11, 2024, according to the Central Bank of Nigeria.