Naira depreciates by 4%, drops to N1,035/$ at official market

Naira, on Wednesday, hit N1035.12 per dollar at the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM) window.

The foreign exchange (FX) rate movement represents a 4.72 percent decline in naira from N988.46/$ recorded on Tuesday, the first trading day of 2024.

Data from FMDQ Securities Exchange, a platform that oversees official FX trading in Nigeria, showed the official window recorded a low of N700 and a high of N1,224 to the dollar. 

FMDQ said trading opened at N932.67 and closed at the rate of N1035.12. 

The daily FX market turnover at the NAFEM window totalled $85.68 million.

Meanwhile, at the parallel section of the market, the local currency depreciated by N15 or 1.23 percent to N1,230 on Wednesday — from N1,215 traded on December 30, 2023.

The downturn of the naira occurred despite forecasts that indicate that the currency will recover in the year.

Bismarck Rewane, chief executive officer, Financial Derivatives, said Nigeria’s exchange rate is expected to rise in 2024.

Similarly, Olayemi Cardoso, CBN governor, also projected the exchange rate pressures will reduce significantly in the year.