Naira falls to N1,035.12/$ despite increased dollar liquidity

The foreign exchange (FX) market on Wednesday recorded depreciation of naira to N1,035.12/$, the second time in the new year.

After trading on Wednesday, naira weakened by 4.50 percent as the dollar was quoted at N1,035.12 . n to 8.m quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ indicated.

This was attributed to increased demand for the greenback amid a significant rise in dollar supply at the official market.

The volume of FX transactions, representing the daily market turnover, rose significantly to $85.68 on Wednesday from $15.38 million recorded on Tuesday.

Related News

The FX rate quoted by willing buyers and willing sellers on the spot trading depreciated to N1,224, high on Wednesday as against N1,130 and the lower bid rate firmed to N700 from N744.50 per dollar.

At the money market, the Nigerian treasury bill secondary market closed on a mildly positive note on Wednesday, with the average yield across the curve decreasing by 2 bps to 6.41 per cent from 6.43 per cent on the previous day, according to FSDH research.

Average yield across the long-term maturities declined by 4 bps. However, the average yields across short-term and medium-term remained unchanged at 2.54 per cent and 4.74 per cent, respectively. Treasury bills for the September 5, 2024 (-77 bps) maturity bill witnessed maximum buying interest.

The Overnight (O/N) rate increased by 0.05 per cent to close at 16.00 per cent as against the last close of 15.95 per cent, and the Open Repo (OPR) rate increased by 0.13 per cent to close at 15.46 per cent compared to 15.33 per cent on the previous day.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.