Naira Depreciation Persists as Dollar Supply Hits Record Low in Forex Market

According to FMDQ data released at the close of business on Thursday, the depreciation of the Naira continued, with US dollar transactions in the official foreign exchange market plummeting to an unprecedented low of $84.38 million.

The day-to-day FX supply turnover dwindled from $160.77 million on Tuesday to $84.38 million on Thursday.

Consequently, the Naira saw a further decline to N1459.73 per dollar on Thursday from N1416.57 on Wednesday, indicating a depreciation of N43.17 against the dollar in the official foreign exchange market.

Similarly, in the parallel market section, the Naira slipped to N1,450 per dollar on Thursday, compared to N1,438 the previous day, widening the gap between the official and parallel markets to N9.73.

The persistent depreciation of the Naira has been observed for several days in the FX market, despite a recent increase in foreign reserves by $262 million.