Naira Declines Against Dollar as FX Turnover Increases

On Wednesday, the naira continued to lose value against the dollar in both the official and parallel foreign exchange markets.

According to data from FMDQ, the exchange rate in the official market dropped from N1,678.93 per dollar on Tuesday to N1,687.52 on Wednesday, marking a loss of N8.59.

Performance in the Parallel Market

The decline was also observed in the parallel market, where the naira fell from N1,740 to N1,750 per dollar.

This reflects ongoing challenges in stabilizing the currency despite increased foreign exchange turnover.

Interestingly, foreign exchange transactions turnover rose significantly, moving from $128.59 million on Tuesday to $173.29 million on Wednesday, based on FMDQ reports.

This indicates heightened activity in the FX market, though it has not alleviated the pressure on the naira.

The Central Bank of Nigeria (CBN) has been actively working to stabilize the naira. However, fluctuations in the currency's value have persisted over recent months, reflecting broader economic challenges.

The continued depreciation of the naira against the dollar highlights ongoing volatility in Nigeria's foreign exchange market. Efforts to stabilize the currency remain critical as businesses and individuals navigate these economic challenges.