Naira depreciates further against dollar despite increased turnover

Nigeria’s local currency, the Naira, recorded a slight depreciation on Friday, trading at ₦1,652.25 against the American U.S. dollar at the official market.

This marks a loss of ₦2.05 or 0.12% compared to Thursday’s exchange rate of ₦1,650.20 per dollar, according to data from the FMDQ Exchange.

Despite this decline, the daily turnover at the official market saw a significant rise, climbing to $296.63 million on Friday from $214.73 million on Thursday.

At the Investor’s and Exporter’s (I&E) window, the Naira traded within a range of ₦1,699.00 and ₦1,620.00 against the dollar, reflecting ongoing pressures on the currency amidst fluctuating market dynamics.

Analysts attribute the continued depreciation of the Naira to persistent demand for foreign exchange and structural issues within the economy. The increase in daily turnover signals heightened activity in the market, but it has yet to stabilize the currency’s value.

Market observers continue to monitor developments as the Central Bank of Nigeria and policymakers face mounting pressure to address the currency’s challenges.