• Monday, June 17, 2024
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Naira loses 0.42% as FX market records marginal turnover

Nigeria’s Naira Woes Point to a Bigger Problem in Africa

Naira lost 0.42 percent of its value at the official market on Tuesday as the foreign exchange (FX) market recorded a marginal increase in the volume of transactions.

The daily FX market turnover which represented the volume of transactions at the official market increased marginally by 3.36 percent to $71.32 million on Tuesday, from $73.80 million recorded on Monday, data from the FMDQ showed.

Consequently, naira depreciated by 0.42 percent as the dollar was quoted at N775.32/$1 on Tuesday compared to N772.12/$1 quoted on Monday at the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official FX market.

Read also: Naira rate gap widens as dollar supply stays tight

The continued loss in the value of the naira followed the scarcity of dollars occasioned by low inflows from oil receipts, foreign capital, and diaspora remittances among others, according to analysts.

At the parallel market, also known as the black market on Wednesday, the naira steadies between N920 and N925 at the various street trading areas across the country.

During the intraday trading on Tuesday, the dollar was quoted at N920 to N925/$1, which represents 1.09 percent (N5 – N10) depreciation compared to N915 per dollar traded during the morning session.

The exchange rate gap between the official and parallel segments of the foreign exchange (FX) has widened to N150 per dollar from N96/$1 after FX unification in June 2023.

However, with the current exchange rate, the gap between the official and parallel market has dropped to N150 from N301 in 2021.