The naira’s value declined in the parallel market on Wednesday, trading at “1,705/dollar,” as reported by Bureau De Change operators in Lagos and Abuja.
According to The Punch, Aliyu Sani, BDC operator in Lagos, said that he sold dollars for “N1705” and bought at “1,695/$.” Meanwhile, in Abuja, the rate was slightly lower at “N1,700.”
Currency trader Suraju Ajao stated that he sold dollars at “1700/$” and bought them at “1,690/$.”
On the Nigerian Autonomous Forex Exchange Market, housed on the FMDQ Securities platform, the naira closed at “1659.69/$,” showing a “0.04 per cent” drop from the “1658.97/$” exchange rate recorded on Tuesday.
In the official market, the naira’s high reached “1,682/$,” while its low was “1,562.97/$.”
Daily turnover declined from “$217.86 million” on Tuesday to “$177.10 million.”
Earlier in the week, the naira hit a new low, closing at “1,700/dollar” on Monday, a “0.29 per cent” drop from “N1,695 to the dollar” last Friday.
The World Bank recently ranked the naira among the “worst-performing currencies in Sub-Saharan Africa in 2024.”
By August, the naira had depreciated by around “43 per cent” year-to-date, making it one of the weakest currencies in the region alongside the Ethiopian birr and South Sudanese pound.
This decline is due to increased demand for U.S. dollars in Nigeria’s parallel market, limited dollar inflows, and slow foreign exchange disbursements from the central bank.
