The naira has continued to depreciate against the dollar in the foreign exchange market despite an increase in Nigeria’s external reserves.
According to FMDQ data, the naira fell to N1523.85 against the dollar on Monday, down from N1509.67 traded last Friday. This represents a N14.18 loss against the dollar compared to Friday’s rate.
Similarly, in the parallel foreign exchange market, the naira depreciated to N1530 per dollar on Monday from N1525 on Friday.
This depreciation comes despite Nigeria’s external reserves rising to $34.66 billion as of July 4, 2024.
Additionally, FMDQ data showed that FX transaction turnover increased to $133.46 million on Monday, up from $116.88 million last Friday.
The ongoing naira crisis in the forex market continues to negatively impact Nigeria’s economy, compounded by rising food prices. The country’s food inflation stood at 40.66 percent in May 2024.
