Naira falls again to US dollar, as report predicts N900/$

The Naira again depreciated against the Dollar at the different foreign exchange (FX) market segments on Wednesday.

Data from the FMDQ Securities Exchange revealed that in the Investors and Exporters (I&E) window, the Naira fell against the US Dollar by 27 Kobo or 0.06 per cent to trade at N461.60/$1 compared with the previous session’s N461.33/$1.

During trading the value of forex transactions recorded on Wednesday stood at $81.95 million, in contrast to the preceding session’s $48.28 million, representing an increase of 69.7 per cent or $33.67 million.

In the Peer-to-Peer (P2P) window of the currency market, the local currency depreciated against the greenback yesterday by N2 to sell at N771/$!, in contrast to Tuesday’s value of N769/$1.

Also, in the parallel market segment of the forex market, the domestic currency lost N1 against the American currency to quote at N768/$1 compared with the preceding day’s N767/$1.

However, in the interbank segment, the Naira closed flat against the Pound Sterling and the Euro at N557.82/£1 and N491.07/€1, respectively.

READ ALSO:Naira falls across FX markets after Buhari’s broadcast

Meanwhile, Andersen, an independent tax and business advisory firm has said that the parallel rate of the naira may fall to N900 in 2023 from demand pressure if mitigating measures are not taken.

Andersen Global disclosed this in its report titled ‘Nigeria’s 2023 economic outlook’, presented by its partners in Lagos.

The report read in part, “In 2022, the value of the naira was relatively more stable in the official market than in the parallel market thereby widening the premium between the two exchange rate windows. This was due to the heightened demand pressure spurred by FX illiquidity.

“FX excess demand pressure is expected to continue in 2023 fuelled by varying factors such as elevated global interest rates attracting portfolio investments away from Nigeria; a structurally import-dependent economy; currency speculations if the gap between official and parallel market rates are not closed; etc, which will make the naira to remain pressured in the foreign exchange windows.”

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