Nigeria’s official exchange rate plunges to N1,561, marking the lowest level since March
The naira experienced a significant decline on the Nigerian Autonomous Foreign Exchange Market (NAFEM) window,
closing at N1,561.98/$1 on Wednesday, July 10, 2024.
Based on data from the FMDQ Securities Exchange, the naira depreciated by 2% from N1,532.58/$1
recorded the day before.
This marks the third consecutive depreciation despite stronger external reserves and increasing
foreign exchange (FX) turnover.
It also represents the lowest level since March 18, 2024, when it stood
at N1,597.25/$1, as the naira approaches N1,600 less
than three weeks after surpassing the N1,500 threshold.
Naira traded at N1,585/$ intra-day high
The trading patterns on Wednesday further highlight the volatile nature of the FX market.
Throughout intra-day trading, the exchange rate reached an intra-day
high of N1,585/$1, indicating periods of heightened buying pressure on the naira.
Conversely, the intra-day low fell to N1,475/$1. The sharp fluctuations within
a single trading day indicate increased uncertainty and instability in the market.
Consecutive rise in FX turnover
Despite the naira's recent decline against the dollar, there has been a consistent
increase in FX turnover during the same period.
FX turnover on the official market surged by 25.78% on Wednesday, reaching $236.7 million,
up from $188.19 million the day before.
The surge was more significant on Tuesday, with a 41.01% increase, while on Monday,
it saw a rise of 14.19%.
This week, FX turnover has risen by 77.36% between Monday and Friday.
More Insights
Nairametrics previously reported that Nigeria’s external reserves hit $35.05 billion as of July 8, 2024,
the highest level since May 30, 2023, when it was $35.09 billion,
approximately 14 days before the introduction of the FX unification policy in June 2023.