Emmanuel Ochayi
The naira continued its downward trend, losing value against the US dollar on Thursday at the official market.
According to data from the FMDQ exchange securities, the naira depreciated by N12 or 0.86 percent to N1,402 against the US dollar, down from N1,390 on Tuesday.
There was no trading activity on Wednesday due to the Worker’s Day celebration. At the Nigerian Autonomous Foreign Exchange Market (NAFEX), the intraday high closed at N1,445 on Thursday, weaker than N1,450 on Tuesday, while the intraday low depreciated to N1,299 on Thursday, down from N1,200 on Tuesday.
Dollars supply at NAFEX appreciated by 3.1 percent or $7m to $232 on Thursday, up from $225.36m recorded on Tuesday. The naira’s depreciation follows renewed demand for the greenback at both the official and parallel markets.
Despite a brief gain of N28.15 on the final trading day of April, settling at N1,390.96/$, the naira has depreciated by 5.8 percent since the beginning of April, from N1,309.39 on April 1.
Bureau De Change operators also reported a reduction in the naira’s value at the parallel market on Thursday. Abubakar Yahu, a BDC operator in Abuja, said, “The naira depreciated today. We sell at N1,360 per dollar and we buy from customers at N1,310, depending on how you bargain. But we are expecting that the rate will drop tomorrow. Demand is still coming, it’s not like before, but it’s still high.”
Another currency trader, Ibrahim Isa, in Lagos, confirmed the rate and emphasized the need for the government to stabilize the naira for a long period. “The market is moving slightly, but it will be better if we can stay on a particular amount and stabilize the economy.”
The continued depreciation of the naira has raised concerns about the impact on the economy and the need for urgent measures to stabilize the currency.
