On Thursday, the naira experienced a decline in value at the official market, falling to N1,402 against the US dollar.
Data from the FMDQ exchange securities shows that the naira decreased by N12 or 0.86%, compared to the N1,390 rate recorded at the close of trading on Tuesday.
No trading occurred on Wednesday due to the celebration of Worker’s Day.
Over at the Nigerian Autonomous Foreign Exchange Market, the intraday high settling at N1,445 on Thursday marked a weakening from the N1,450 recorded on Tuesday. Similarly, the intraday low also dropped to N1,299 on Thursday, down from N1,200 on Tuesday.
Dollar supply at NAFEX saw a 3.1% increase, rising by $7 million to $232 million on Thursday compared to the $225.36 million recorded on Tuesday.
The naira’s depreciation is attributed to renewed demand for the US dollar across both the official and parallel markets.
Based on FMDQ’s official trading platform data, the naira appreciated by N28.15 on the final trading day of April, closing at N1,390.96 per dollar, in contrast to N1,419 per dollar on April 29.
This positive trend was also evident in trading volumes, with a significant 52.45% surge in forex turnover to $225.36 million, up from the previous volume of $147.83 million.
However, compared to the beginning of April, the rate on April 30 reflected a 5.8% depreciation from N1,309.39 seen on April 1.
Furthermore, Bureau De Change operators noted a reduction in the naira’s value at the parallel market on Thursday.
Abubakar Yahu, a BDC operator in Wuse 2, Abuja, mentioned that traders were buying the dollar at N1,310 and selling at N1,360, resulting in a N50 profit margin.
He pointed out that while the dollar’s value was slightly increasing due to consistent demand, it was not as drastic as when the naira plummeted to N1,900 two months ago.
According to him, “The naira depreciated today. We sell at N1,360 per dollar and buy from customers at N1,310 depending on negotiation. However, we anticipate a rate drop tomorrow. Demand persists, though not as high as before.”
Ibrahim Isa, another currency trader in Ikeja, Lagos, reaffirmed the rate, emphasizing the need for the government to stabilize the naira over an extended period for economic stability.
“The market is experiencing slight movements, but it would be beneficial to maintain a consistent rate to stabilize the economy.”