Prices of imported goods to rise, as Naira continues depreciation to US dollar

Nigerian currency once again suffered another drop in value to foreign currencies at the official market on Wednesday.

Data obtained from FMDQ securities showed that the midweek session ended with the Naira closing at N416.25/$ at the Investors and Exporters (I&E) segment of the foreign exchange market.

Wednesday Naira to dollar closing rate was a 50 kobo or 0.12 percent loss compared to Tuesday’s rate of N416.25/$1.

The continued poor performance of Nigerian currency this week could lead to an increase in the cost of imported goods such as cars, others.

FMDQ data also revealed a forex demand pressure at the I&E, with transactions worth $165.39 million achieved on Wednesday as against the $102.07 million achieved a day earlier.

This indicated that the value of trades rose by 62.0 per cent or $63.32 million.

Read also: Nigerians spent N9.28tn on imported goods in nine months –NBS

Similarly at the interbank segment of the FX market, the value of the Naira to the Dollar went down by 18 kobo to trade at N416.54/$1 in contrast to N416.36/$1 at the preceding trading day.

The Naira also suffered a beating to the British Pound Sterling as it declined by N3.28 to close at N565.20/£1 versus N561.92/£1 on Tuesday.

Against the Euro, the domestic currency contracted by N2.04 to sell for N471.44/€1 compared to N469.40/€1 it was traded on Tuesday.

Black marketers continue to watch the performance of Naira at the official market leaving the exchange rate at N565/$ on Wednesday.

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