Victor Ezeja
The naira lost N57.13 as exchange rate rose to N1,637.59 per dollar at the official market on Tuesday, 10 September.
This reflects 3.61 per cent loss in 24 hours when to compared to Monday, 9th September closing rate of N1,580.46, according to the Nigerian Autonomous Foreign Exchange Market (NAFEM) data obtained from the FMDQ Securities and Exchange platform.
Join our WhatsApp ChannelThis latest depreciation of the naira came after beginning the week on a positive with N12.86 gain (N1,580.46) when compared to last week’s closing rate of N1,593.32 per dollar.
READ ALSO: Naira Ends Week With ₦46 Gain At Official Market
The NAFEM data on intraday trading show that the naira traded at a high of N1,655.00/$ and a low of N1,499.00/$ on Tuesday.
The FX turnover decreased by 27.5 per cent from $197.37 million on Monday to $143.15 million on Tuesday.
READ ALSO: Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 11th September 2024
The persistent depreciation of naira been has attributed to increasing demand for dollars and inflationary pressure. Nigeria has remained a largely import-dependent economy, making the high demand for foreign exchange an unending activity.
In its bid to increase dollar supply in the retail segment of the forex market, the Central Bank of Nigeria (CBN) had last week Friday, announced decision to sell $20,000 to each eligible Bureau de Change (BDC) operator at ₦1,580 with a mandate for them not to sell with more than 1 per cent above purchase rate.
Despite these are series of other monetary policy measures footed by the CBN, the naira continues to experience depreciation in the foreign exchange market.
Economic experts have continued to emphasise the need to boost domestic production as the only way to increase foreign exchange earnings.
Crude oil price drop and Impact on FX Earnings
With crude oil remaining the major foreign exchange earning for the country, the current global crude oil prices decline significant impact on FX earnings.
Brent crude futures dropped below $70 per barrel for the first time since December 2021. Also, the U.S. West Texas Intermediate (WTI) crude prices dropped by 42 cents to $68.29 per barrel.
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.
