On Wednesday, the Nigerian Autonomous Foreign Exchange Market (NAFEM) market saw the naira fall to its lowest level versus the dollar.
According to data from the FMDQ Securities Exchange, the naira traded at N1,561.98/$1 on July 10, 2024, down 2% from the previous day’s rate of N1,532.58/$1.
This is the third straight devaluation, despite higher external reserves and increased foreign exchange (FX) turnover, and the lowest level since March 18, 2024, when it was N1,597.25 per dollar. The naira is reaching N1,600, less than three weeks after surpassing the N1,500 barrier.
Wednesday’s trading activity demonstrates the FX market’s volatility. During intra-day trading, the currency rate reached a high of N1,585/$1, showing strong buying pressure, while the low fell to N1,475/$1. The rapid fluctuations within a single day suggest significant market uncertainty and instability.
Despite the naira’s three-day decline against the dollar, FX turnover on the official market has consistently increased. On Wednesday, FX turnover surged by 25.78% to $236.7 million from $188.19 million the previous day.
The increase was even more pronounced on Tuesday, with a 41.01% rise, and on Monday, with a 14.19% rise. Over the week, FX turnover has increased by 77.36% from Monday to Friday.
