Naira Depreciation Persists as Dollar Supply Hits Record Low in Forex Market

The Nigerian Naira’s struggle continues as the supply of US dollars in the official foreign exchange market reached an unprecedented low, plummeting to just $84.38 million, based on data from FMDQ at the close of trading on Thursday.

This marks a significant decline from the previous transaction volume of $160.77 million recorded on Tuesday, highlighting the acute shortage of foreign currency in the market.

Consequently, the Naira experienced further depreciation, slipping to N1459.73 per dollar on Thursday, compared to N1416.57 the day before. This represents a substantial N43.17 drop against the dollar in the official foreign exchange market.

Simultaneously, in the parallel market segment, the Naira also depreciated to N1,450 per dollar on Thursday, up from N1,438 the previous day. This widening gap between the official and parallel market rates now stands at N9.73.

The depreciation trend of the Naira has persisted over several days, underscoring the ongoing forex instability in the country. Despite a recent increase in foreign reserves by $262 million, Nigeria’s forex challenges remain unabated.