Naira Falls Further Against Dollar As News Exchange Rate Emerges

Data from the FMDQ securities exchange revealed that on Monday, the naira depreciated further against the dollar.

It fell to N1,234 against the dollar at the official foreign exchange market. This signifies a decline of N65 or 5.26 percent from N1,169.99/$1 recorded on Friday.

The naira had earlier strengthened to around N1,072.74 on Wednesday, with traders foreseeing the possibility of the naira trading below N1,000/$1 for the first time. However, the naira’s upward momentum, which had made it the best-performing currency globally since late March, halted on Sunday with its first weekly decline in several weeks on the parallel market.

Bureau de Change operators, speaking to Punch, attributed the recent increase in the dollar rate to market forces. They expressed uncertainty regarding whether there would be further increases or reductions before the week’s end.

Abubakar Taura, a BDC operator, remarked, “We sold the dollar today between the rate of N1,250 and N1,270, and it is a bit surprising because we don’t even know the real reason but that is the market; one day there will be profit and another day we make losses.”