The naira’s downward trend persisted on Wednesday, hitting N1608 to one US dollar in the Nigerian Foreign Exchange Market, marking another day of steady decline.
Following a slight decline on Tuesday, the naira closed at N1606.64/$, down by N1 from the previous day, and also depreciated by about N3 on Monday, falling from N1602.18/$ on Friday to N1605.62/$, according to data from the Central Bank of Nigeria (CBN).
The naira’s depreciation persisted yesterday, with the naira-to-dollar exchange rate closing at 1,608.60. According to the data, the exchange rate reached a peak of 1,615 during the day before easing further.
Amidst high demand and short supply of foreign exchange, the naira has depreciated further, while also falling to N1,610 at the parallel market from N1,605 the previous day.
AIICO Capital’s daily financial market analysis noted that high FX demand was met with limited supply, with exporters providing the main inflows, causing the naira to weaken 12bps to ₦1,608.6036, with USD/NGN trading between ₦1,605.01–₦1,615.00.
