On Tuesday, Nigeria’s official foreign exchange (FX) market saw a significant turnover decline of 36.62 percent, leading to a N106.05 depreciation of the naira against the US dollar.
Data from the FMDQ Securities Exchange Limited revealed that at the close of trading on the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira was exchanged at N1,658.97 per dollar. This marked a 6.4 percent decline from Monday’s rate of N1,552.92, highlighting growing pressure on the local currency.
The market turnover also fell sharply, decreasing from $343.71 million on Monday to $217.86 million on Tuesday, representing a 36.62 percent drop in total traded volume.
Intraday trading saw further volatility in the naira’s value. The intraday high on Tuesday reached N1,670.50, a slight decrease from Monday’s peak of N1,682. On the lower end, the naira recorded an intraday low of N1,566.29, falling below Monday’s low of N1,540.Â
This fluctuation reflects ongoing instability in the FX market as traders and businesses navigate a fluctuating exchange environment.
In the parallel market, also known as the black market, the naira remained relatively stable, trading at around N1,700 per dollar, according to data from online foreign exchange platforms and street vendors.Â
This parallel market rate contrasts with the volatility seen in the official exchange window, signaling ongoing challenges in Nigeria’s currency management.
