Naira Falls to N1,234 Against the Dollar on Monday According to The FMDQ Data

On Monday, data from the FMDQ securities exchange revealed that the naira's value at the official foreign exchange market declined to N1,234 against the US dollar.

According to the exchange rate, the naira dropped from N1,169.99/$1 on Friday by N65 or 5.26%.

On Wednesday last week, the naira appreciated about N1,072.74, as traders predicted it would fall below N1,000/$1 for the first time.

Related News:

• Naira Traded for N1,072 Against the Dollar at the Official Market on Wednesday

• Naira Ranks as Best Performing Currency as It Continues to Appreciate - Goldman Sachs

• Naira Is Expected to Appreciate More Following CBN Measures

However, the recent decline corresponds with the words of the governor of the top bank, Yemi Cardoso. When questioned about the sudden decrease in foreign reserves, he stated that the bank's intention was not to defend the naira.

It was reported in February/March that Nigeria's foreign exchange reserves would decline, which, however, happened. The Central Bank of Nigeria's most recent data shows that on April 18, 2024, the external reserves reached an all-time low of $32.1 billion. The reserves fell from $34.45 billion on March 18, 2024, to $2.35 billion in just 31 days.

However, the CBN governor emphasised that the recent balance in reserves has nothing to do with sustaining the naira at the World Bank/IMF Spring Meetings, saying the bank would not intervene in the exchange unless extraordinary circumstances arise. 

He said, "I want to make this as clear as possible: we do not intend to defend the naira. And as much I have read in the recent few days, here are some opinions concerning what is happening with our reserves and if the central bank is defending the naira."

READ ALSO: 2024 UNESCO Internship Program. Apply Now!

In the weeks before Binance was shut down, the value of the naira fell the highest against the dollar to trade on the foreign exchange market at N1,950 in mid-February.

According to the forex transaction summary, the intraday high declined to close at N1,295 per dollar. A decline to N1,051/$ followed the intraday low. On Monday, the daily total turnover slightly declined to $110.17 million.

Currency dealers sold the dollar on the parallel market between N1,250 and N1,270, down from the N1,154 rate recorded last Friday.

WIN N50,000 GIVEAWAY EVERY WEEK HERE!

Back Story

It was reported last week that the naira noticed a significant shift against the United States dollar at the official market on Wednesday, following a slight depreciation on Tuesday.

The naira closed Wednesday's trading session at N1,072.74/$1, up from N1,148.14 on Tuesday, according to market data posted on the FMDQ website.

This represents an appreciation of N75.4, or 6.6%, from N1,148.14, the domestic currency closed on Tuesday. The naira closed at N1,072.74/$1 on Wednesday, reaching an intraday high of N981.04 and a low of N1,220.00 to the dollar.