The naira hit an all-time low of N1,689.88 per dollar on Tuesday in the official foreign exchange (FX) market, following a dramatic 77.42 per cent drop in daily FX turnover.
After the close of trading on Tuesday, the exchange rate for the dollar stood at N1,689.88, representing a 0.5 per cent depreciation compared to the N1,681.42 recorded the previous day, as reported by the FMDQ Securities Exchange Limited.
The sharp decline in turnover saw the daily FX market activity fall to just $106.44 million, down from $471.50 million on Monday. The data from the FMDQ also indicated that the intraday highs and lows were steady at N1,695 and N1,631 per dollar, respectively, reflecting a range of fluctuations within the market.
On the parallel market, often referred to as the black market, the naira held steady at N1,740 per dollar, maintaining its value despite the volatility in the official market.
According to the Central Bank of Nigeria’s (CBN) business expectations survey, firms anticipate further depreciation of the naira in November and over the next three months. However, there is a more optimistic outlook for the currency’s value over the next six months, with expectations for an eventual appreciation.
In a more positive economic indicator, Nigeria’s external reserves have increased to $40.08 billion as of November 7, 2024. This marks a significant 21.4 per cent rise from the $33.02 billion level recorded at the beginning of the year, as per the latest data from the CBN.
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