Naira continues to fall, closes at N1608/$

The naira continued its downward spiral on Wednesday, closing at N1608 to one US dollar in the Nigerian Foreign Exchange Market (NFEM), marking yet another day of sustained depreciation.

This follows a slight drop on Tuesday, where the local currency closed at N1606.64/$, losing N1 from the previous day. Data from the Central Bank of Nigeria (CBN) also revealed that the naira depreciated by about N3 on Monday, falling from N1602.18/$ on Friday to N1605.62/$.

However, the depreciation continued yesterday as the naira to dollar exchange closed with 1,608,60.

As the data indicated, the exchange rate peaked at the highest rate of 1,615 during the day before it further eased.

This is coming amidst what analysts call high forex demand amidst short supply.

Also, the local currency also depreciated at the parallel market to N1,610 from N1,605 in the previous day.

According to AIICO Capital in its daily financial market analysis, “high FX demand met limited supply; exporters provided main inflows.”

USD/NGN traded between ₦1,605.01–₦1,615.00, with the naira weakening 12bps to ₦1,608.6036.