The Nigerian currency experienced another day of depreciation in both the parallel and official markets as economic pressures continued.
Yesterday, the Naira slid to ₦1,520 per dollar in the parallel market, a slight decrease from ₦1,515 per dollar on Tuesday.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira also saw a decline, falling to ₦1,512.61 per dollar, down from ₦1,509.45 per dollar the previous day. This depreciation of ₦3.16 highlights ongoing volatility in the foreign exchange markets.
Data from FMDQ revealed a significant drop in market activity, with the volume of dollars traded plummeting by 98.4 percent to $114.91 million from $213.31 million traded on Tuesday.
This dramatic fall in turnover reflects the cautious stance of investors and traders amid fluctuating rates.
The gap between the parallel market rate and the NAFEM rate has widened, now standing at ₦7.39 per dollar compared to ₦5.55 per dollar on Tuesday.
This growing disparity points to increasing challenges in currency stabilization and the effectiveness of policy measures aimed at managing exchange rate dynamics.
The continuing depreciation of the Naira underscores the persistent pressures on Nigeria’s foreign exchange reserves and highlights the broader economic challenges faced by Africa’s largest economy.
Market watchers and policymakers remain concerned about the inflationary impact of a weakening currency, which could drive up the cost of imports and exacerbate the cost of living for Nigerians.