As Nigerian settle into the New Year hoping that the hardship in the land would ease off, their currency, the Naira experienced a notable depreciation, reaching N1,035.12 against the US dollar, marking its second decline in the New Year at the official foreign exchange window.
The FMDQ data revealed a 4.50 per cent weakening of the naira compared to the previous day’s rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This decline was primarily attributed to heightened demand for the US dollar, coinciding with a substantial increase in dollar supply in the official market.
The FX transaction volume, indicative of daily market turnover, surged significantly to $85.68 million on Wednesday, a substantial rise from the $15.38 million recorded on Tuesday.
Willing buyers and sellers in the spot trading segment quoted an FX rate of N1,224 on Wednesday, up from N1,130, reflecting the market dynamics. The lower bid rate also strengthened, moving to N700 from its previous position at N744.50 per dollar.
In the parallel market, Bureau de Change dealers in Ogudu reported the naira trading at N1,305 against the dollar on Wednesday. Contrastingly, the street market witnessed the naira exchanging at N1,215 per dollar the day before. These developments underscore the ongoing fluctuations and pressures influencing Nigeria’s currency landscape, signalling potential challenges for market participants in the near term.
