Naira finally submits to pressure, falls heavily at exchange markets

Nigerian Naira recorded a very terrible loss Thursday as it weakened heavily to the dollar at all foreign exchange markets.

Data from FMDQ showed that at the Investors and Exporters (I&E) window of the foreign exchange (forex) market, Naira exchanged at N435/$1 on Thursday.

This is a 4.81 percent or N20 drop in value in 24 hours when compared with N415/$1 it closed on Wednesday.

This decline happened amid an increased demand for dollars by $107.81 million or 90.2 per cent.

FMDQ data shows the value of transactions on Thursday was $227.29 million in contrast to the previous day’s $119.48 million.

Read also: Naira value rises against US dollar after Christmas holiday

Similarly at the interbank segment of the market, the domestic currency also recorded a heavy loss against the greenback on Thursday, going down by 75 kobo to close at N412.70/$1 compared with N411.95/$1 it closed at the previous day.

At the same FX window, the Nigerian currency depreciated against the Pound Sterling by N4.23 to trade at N556.98/£1 in contrast to the previous session’s N552.75/£1.

Also, against the Euro, the Naira depreciated by 72 kobo to quote at N467.54/€1 compared with N466.82/€1 it was traded at the midweek session.

At the black market also Nigerian currency fell by N5 on Thursday to trade at N570 amid increased demand for dollars.

Traders who spoke to Ripples Nigeria revealed that the low performance of Naira to dollar was a reaction to the increased demand for many preparing to travel but can’t go through the hassles of the bank.

“We give you dollars easily instead of the bank stress, but we have to make money,” a trader at Ikeja said.

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