Despite an increase in Nigeria’s external reserves, the naira has resumed its depreciation versus the dollar on the forex market.
According to FMDQ data, the naira fell to N1523.85 per dollar on Monday, down from N1509.67 last Friday.
This implies a N14.18 loss versus the dollar, compared to N1509.67 traded on Friday.
Similarly, the naira fell to N1530 per dollar at the parallel foreign exchange market on Monday, from N1525 on Friday.
The result occurs despite Nigeria’s external reserves rising to $34.66 billion as of July 4, 2024.
Furthermore, FMDQ data indicated that FX transaction turnover was $133.46 million on Monday, up from $116.88 million last Friday.
The naira issue in the forex market has continued to have a severe impact on the Nigerian economy. This is aggravated by the increase in food prices in Nigeria. The country’s food inflation was 40.66 percent in May 2024.
