Naira Sees Massive Drop Against Dollar in a Single Day

The Naira experienced a massive depreciation against the dollar in the foreign exchange market. Data from FMDQ revealed that on Wednesday, the Naira weakened to N1561.98 per dollar, a steep drop from the N1532.58 rate recorded on Tuesday. This marks a depreciation of N29.4 in just one day.

The parallel market mirrored this trend, with the Naira falling to N1560 per dollar on Thursday, down from N1540 the previous day. Analysis indicates the Naira lost N29.4 and N20 against the dollar at the official and parallel markets, respectively, on Thursday alone.

This recent decline surpasses the N22.91 depreciation observed from last Friday to Wednesday, highlighting a rapid weakening of the currency. The Naira’s continued downward trajectory is pushing it towards the N2000 per dollar mark, a level last approached on February 20, 2024, when it traded at N1825.

This depreciation persists despite an increase in Nigeria’s external reserves, which stood at $34.66 billion as of July 4, 2024. The latest figures underscore the ongoing challenges facing the Naira in the forex market.