The naira experienced further depreciation against the US dollar on Wednesday, marking a decline in both the official and parallel exchange rates.
At the official foreign exchange market, data from the Financial Markets Dealers Quotations showed the naira weakening to N1,687.52 per dollar, a drop from Tuesday’s exchange rate of N1,678.93 per dollar.
This represents a loss of N8.59 in a single trading session, highlighting the persistent pressure on the naira.
The black market also recorded a downturn, with the naira trading at N1,750 per dollar on Wednesday, compared to N1,740 on Tuesday.
Interestingly, this slide occurred despite a notable increase in FX transaction turnover.
FMDQ data revealed that turnover rose sharply to $173.29 million on Wednesday, up from the $128.59 million recorded on Tuesday.
This uptick in trading volume underscores the heightened demand for dollars amid limited supply.
The naira’s ongoing fluctuation against the dollar has been a recurring challenge in recent months, despite several intervention measures by the Central Bank of Nigeria aimed at stabilizing the currency.
These interventions, including policy adjustments and forex injections, have so far yielded limited results in curbing the volatility.
The continued depreciation of the naira underscores the need for structural reforms to address the underlying issues in Nigeria’s foreign exchange market, which has been strained by a combination of high demand for dollars, dwindling reserves, and external economic pressures.
