Naira Ends October With Massive Decline At Official Market

The naira recorded a massive decline on Thursday, 31st October at the official segment of the foreign exchange market, ending the month of October on a negative note.

According to the Nigerian Autonomous Foreign Exchange Market (NAFEM) data published on the FMDQ Securities and Exchange platform, the naira closed trading on Thursday, 31st October, at ₦1,675.49 against ₦1,631.17 per dollar on Wednesday, 30th October. This reflects ₦44.32 or 2.72 per cent loss.

After closing trading last week at ₦1,600 per dollar, the local currency’s value crashed to ₦1,670.65 per dollar on Monday, 28 October.

It however, experienced a rebound to ₦1,630.45 on Tuesday, 29th October, before recording a slight drop to ₦1,631.17 on Wednesday.

At the parallel market, also known as black market, the naira has maintained an upward trend of ₦1,750/$ for the past two days.

The depreciated despite increase in FX transaction turnover to from $128.98 million recorded on Wednesday to $166.61 million on Thursday, according the data on FMDQ platform.

In the past months, the naira had continued to fluctuate against the Dollar despite interventions by the Central Bank of Nigeria.

The CBN’s intervention has been specifically to boost liquidity and ease demand pressure on the FX market.

However, the World Bank recently called on the apex bank to refrain from intervening in the country’s FX market through FX auctions.

The volatility in the FX market has continued to contribute significantly to the inflationary pressure on the economy, as Nigeria remains largely import-dependent.