Naira faces decline against the US dollar in forex market

In a recent turn of events, the Naira experienced a depreciation against the US dollar at the official foreign exchange market on Wednesday.

According to official data from FMDQ, the Naira opened at N871.12/$1 but witnessed a decline, closing at N904.56/$1 at the end of the business day. This reflects a notable 4.38% depreciation within the span of a day.

Interestingly, despite a 22% increase in dollar supply to $120.89 million on Wednesday, the Naira struggled to maintain its value against the US currency.

In tandem with the official market, the Naira also faced a marginal depreciation in the parallel market, trading at N1,260/$1 on Wednesday compared to N1,185/$1 the previous day.

This development unfolds against the backdrop of recent actions by the Central Bank of Nigeria, which elevated the exchange rate for cargo clearance from N783/$ to N952/$ in response to the ongoing foreign exchange challenges.

The dynamics in the forex market continue to play a crucial role in shaping the Naira’s performance, prompting close scrutiny from market participants and analysts alike.