Naira Weakens Further in Currency Markets

The Naira has experienced a further decline, dropping to N1,610 per dollar in the parallel market as of yesterday, down from N1,600 per dollar just a day earlier. This latest depreciation underscores the ongoing challenges facing the Nigerian currency.

In a similar trend, the Naira also weakened in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where it fell to N1,592.06 per dollar from Monday’s rate of N1,579.22 per dollar. Data from FMDQ, a leading financial markets data provider, revealed that the indicative exchange rate for NAFEM witnessed a depreciation of N12.84.

Moreover, the volume of dollars traded in NAFEM saw a decrease of 6.5%, with the turnover dropping to $152.26 million from $162.99 million on Monday. This reduction in trade volume coincides with the narrowing of the margin between the parallel market and NAFEM exchange rates, which contracted to N17.94 per dollar from the previous N20.78 per dollar.

The continued depreciation of the Naira in both markets highlights the pressures facing the currency, as economic factors continue to impact its value.