The Nigerian naira has slumped to N1,687.52 at the official market on Wednesday.
This is the second time the naira recorded depreciation within the week.
Join our WhatsApp ChannelWednesday’s closing rate reflects N8.59 depreciation from Tuesday’s N1678.93 per dollar, according to the Nigeria Autonomous Foreign Exchange Market (NAFEM) data published on the FMDQ Securities and Exchange platform.
Meanwhile, the naira also fell at the parallel market on from N1,740 on Tuesday to N1,745 per dollar on Wednesday.
READ ALSO: Naira Ends Week With Loses Despite Surge In Dollar Supply
The naira had opened the week on a negative note in the foreign exchange market on Monday, with a closing rate of N1,690.37/$ against Friday’s N1,652.25/$.
NAFEM data showed that trading at the Importers and Exporters (I&E) window was between a high of 1705.00/$ and a low of N1601.50/$.
The FX transaction turnover data showed there was an increase of $447 million from $128.59 million to $173.29 million.
The naira has continued to experience volatility in the foreign exchange market despite efforts by the Central Bank of Nigeria (CBN) to the local currency through the injection of FX in the market and a raft of other measures.
The high exchange rate has also significantly contributed to the soaring inflation rate in the country. The apex bank has by its monetary policy tightening measure, increased the Monetary Policy Rate (MPR), the benchmark interest rate, for five consecutive times in 2024, in an attempt to bring down the inflation rate. With the MPR currently at 27.25 per cent, and the inflation rate having increased further in October to 33.88 per cent from 32.70 per cent in September, there are concerns as to whether the CBN would further hike the interest rate during the Monetary Policy Committee (MPC) meeting coming on Monday 25 and Tuesday, 26 November 2024, given the impact on businesses.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
