Naira extends fall against US dollar

The Nigerian currency, the Naira extended its fall against the United States dollars on the resumption of trading activities at the official market after the Christmas break.

Data from FMDQ securities showed that at the Investors and Exporters (I&E) forex window, Nigeria’s official foreign exchange market, Naira depreciated by 1.06 percent as the dollar was quoted at N461.33 on Wednesday as against the last close of N456.50 on Friday before the holiday.

Most currency dealers who participated in the forex auction on Wednesday, maintained bids between N440.00 (low) and N461.33 (high) per dollar.

The daily foreign exchange market turnover increased by 25.79 percent to $196.06 million on Wednesday from $155.86 million recorded on Friday, data obtained from the FMDQ indicated.

At the black market, it was a stable exchange rate for Naira against US dollar.

Traders who spoke to Ripples Nigeria revealed that Naira maintained stability as the dollar was quoted at the rate of N740.

READ ALSO:Naira appreciates at black market

This is the same rate it has exchanged since Friday last week, at the parallel market.

Traders attributed the naira stability to moderation in demand amid increased supply of dollars from the diasporas.

People are bringing dollars and demand is not too much,” said one black market operator on Wednesday.

Meanwhile, according to the World Bank in its recent report, Naira at the official exchange market depreciated by 5.2 percent in 2022, as at November; while the parallel market rate has depreciated by 40 percent year to November 30.

The global Bank said the parallel market premium widened from 37 percent in January to 71 percent in November 2022.

The Bank avowed that “Nigeria exchange rate policy settings are stifling business activities, investment and growth, and amplifying macroeconomic risks”.

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