Business

See What Happens to Naira Against Dollar at Official Market

Published by Tope Fakinlede on July 9th, 2024.

See What Happens to Naira Against Dollar at Official Market

Naira

By Oluwakemi Abimbola

The naira experienced a decline on Monday, depreciating at both the official and parallel markets.

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira fell to 1,523.85 per dollar, down from its previous close of 1,509.67. NAFEM is a trading segment for investors, exporters, and end-users where forex trades are conducted at market-determined rates.

During the trading day, the naira reached a high of 1,540.75 and a low of 1,474.05 to a dollar. The turnover increased to $133.46 million, up from $116.88 million on Friday, indicating improved liquidity in the market.

In the parallel market, The PUNCH found that the naira depreciated by 0.33 percent, closing at 1,528 per dollar compared to 1,523 per dollar on Friday.

Last week, the naira had seen some relief due to reduced speculative activities, which had strengthened its position against the US dollar across various market segments.

As of the end of the first half of 2024, the naira was the world’s worst-performing currency, according to a Bloomberg report. Factors such as depreciation, insufficient dollar liquidity, and market volatility have hampered the Central Bank of Nigeria’s efforts to stabilize the currency.

Other poor performers in the same period included Egypt’s pound and Ghana’s cedi.

Meanwhile, S&P Global has stated that the Dangote Oil Refinery and Petrochemicals could help address Nigeria’s forex challenges, relieve pressure on the naira, and boost economic development.