The exchange rate between the Nigerian naira and the US dollar dropped to a four-month low of N1,611 at the official Investor and Exporter window on Monday.
This decline was reported by the FMDQ, where currencies are traded officially.
The depreciation of the naira on Monday reversed the gains experienced at the end of last week when the Central Bank sold forex to traders. According to FMDQ data, the naira closed at N1,611.40 on July 29, 2024, compared to N1,609 at the close of trading on Friday.
Intra-day highs and lows recorded N1,622/$1 and N1,500/$1, respectively, indicating a significant disparity in rates within the official market. Market turnover was $179.34 million on Monday, up from $168.3 million on Friday. Total market turnover for July so far stands at approximately $3.7 billion, compared to $3.3 billion for the entire month of June 2024.
On the parallel market, where exchange rates are traded unofficially, rates ranged between N1,590 and N1,600, slightly lower than the official rate. The exchange rate has depreciated by 7% in July, marking the worst monthly drop since February, when it fell by 9%. January remains the worst month this year, with a monthly drop of 60%.
Nigeria’s exchange rate against the US dollar has depreciated by as much as 77.6% this year, due to forex policies aimed at introducing exchange rate stability. As of July 26, 2024, Nigeria’s external reserves remained around $36.5 billion.
