Naira hits lowest since March, trades at N1,561.98 / $

On Wednesday, the naira hit its lowest point against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window.

According to data from the FMDQ Securities Exchange, the naira traded at N1,561.98/$1 on July 10, 2024, marking a 2% decline from the N1,532.58/$1 rate of the previous day.

This is the third consecutive depreciation, despite stronger external reserves and rising foreign exchange (FX) turnover, and the lowest level since March 18, 2024, when it was N1,597.25/$1. The naira is approaching N1,600 less than three weeks after surpassing the N1,500 mark.

Wednesday’s trading dynamics highlight the FX market’s volatility. The exchange rate peaked at N1,585/$1 during intra-day trading, indicating periods of high buying pressure, while the intra-day low dropped to N1,475/$1. These sharp fluctuations within a single day suggest significant market uncertainty and instability.

Despite the naira’s three-day decline against the dollar, FX turnover on the official market has consistently increased. On Wednesday, FX turnover surged by 25.78% to $236.7 million from $188.19 million the previous day.

The increase was even more pronounced on Tuesday, with a 41.01% rise, and on Monday, with a 14.19% rise. Over the week, FX turnover has increased by 77.36% from Monday to Friday.