Naira to Dollar Fall Continues as USD Supply Falls to All-Time Low at Forex Market

Naira Depreciation Continues as Dollar Supply Falls to All-Time Low at Forex Market.

Naira depreciation continued as US dollar transactions at the official foreign exchange market dropped to an all-time low of $84.38 million, according to FMDQ data at the close of work on Thursday ¹.

FX Supply Turnover Drops.

The day-to-day FX supply turnover dropped from $160.77 million on Wednesday to $84.38 million on Friday, indicating a significant decline in dollar liquidity in the FX market.

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Naira to Dollar Dips to New Low.

The Naira further dipped to N1460.73 per dollar on Friday from N1416.57 on Thursday, representing an N44 depreciation against the dollar at the official foreign exchange market.

Parallel Market Impact.

Similarly, the Naira dropped to N1,470 per dollar on Friday in the parallel market section, compared to N1,450 the previous day, bringing the gap between the official and parallel markets to N20.

Forex Instability Persists.

Naira’s depreciation has been consistent for days now in the FX market, and the country’s forex instability has persisted despite the recent surge in foreign reserves by $262 million ¹.