Business

See the Current Value of Naira as it Experiences Significant Depreciation Against the Dollar

Published by Tope Fakinlede on July 11th, 2024.

See the Current Value of Naira as it Experiences Significant Depreciation Against the Dollar

The Naira experienced a substantial depreciation against the dollar in the foreign exchange market. According to data from FMDQ, the Naira’s value dropped significantly to ₦1561.98 per dollar on Wednesday, compared to ₦1532.58 per dollar on Tuesday. This change represents a loss of ₦29.4 against the dollar within a single day.

In the parallel foreign exchange market, the Naira also fell, reaching ₦1560 per dollar on Thursday, down from ₦1540 the previous day. This indicates a depreciation of ₦20 per dollar in that market segment.

Further analysis reveals that the Naira lost ₦29.4 and ₦20 against the dollar on Thursday in both the official and parallel markets, respectively. This decline surpasses the ₦22.91 depreciation recorded from last Friday to Wednesday.

Despite an increase in Nigeria’s external reserves, which stood at $34.66 billion as of July 4, 2024, the Naira continues to weaken. The last time the Naira approached the ₦2000 per dollar mark was on February 20, 2024, when it traded at ₦1825 per dollar.

This ongoing depreciation trend indicates increasing pressure on the country’s currency, raising concerns about its impact on the economy.