Dollar Appreciates Against Naira, exchanges for N1,490/$ in parallel market

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Dollar Appreciates Against Naira
Dollar Appreciates Against Naira, exchanges for N1,490/$ in parallel market

Dollar Appreciates Against Naira, exchanges for N1,490/$ in parallel market—-The naira experienced further depreciation, reaching N1,490 per dollar in the parallel section of the foreign exchange (FX) market on Monday.

This represents a 0.34 percent decline from the N1,485 rate traded on June 14.

Bureau de change (BDC) operators quoted the buying rate at N1,460 and the selling rate at N1,490, resulting in a profit margin of N30. Meanwhile, at the official window, the naira depreciated slightly by 0.02 percent, falling to N1,483.02 per dollar from N1,482.72 on June 14.

The FMDQ Exchange, which oversees the official window, reported an intra-day high of N1,514.82 and a low of N1,390 per dollar. The daily FX market turnover was recorded at $150.73 million, highlighting the significant volume of transactions.

The gap between the official window and the parallel market currently stands at N6.98. This widening gap underscores the ongoing challenges in Nigeria’s FX market.

Fitch Ratings, a global rating agency, recently projected that the naira would end the year at N1,450 per dollar. Gaimin Nonyane, director of Middle-East and Africa sovereigns at Fitch Ratings, noted that despite the naira’s volatility since its flotation in June 2023, the fluctuations are expected to stabilize by the third quarter of 2024. Nonyane also predicted a gradual depreciation of the naira in 2025, contingent upon the momentum of FX reforms.

As the Nigerian government and financial authorities continue to navigate the complexities of the FX market, these fluctuations and projections will be closely monitored by investors and policymakers alike.

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