Naira depreciates again as Dollar supply drops

The nation’s currency, the naira, depreciated against the dollar at the official Foreign Exchange (FX) market on Thursday as supply dropped at the Investors and Exporters (I&E) forex window, Nigeria’s official window.

According to data obtained from the FMDQ, Dollar supply through the daily foreign exchange market turnover declined by 43.92 per cent to $99.50 million on Thursday from $177.44 million recorded on Wednesday.

The drop in dollar supply consequently increased pressure affecting Naira’s value against foreign currencies.

Data from FMDQ securities showed that at I&E forex window on Thursday, Naira fell to the dollar and was quoted at N445.83, which was higher than N440.30 quoted on Wednesday.

On Wednesday, most currency dealers who participated in the FX auction maintained bids between 447.00 (low) and N442.00 (high) per dollar.

Meanwhile, it was another good day for Naira at the black market.

According to black market traders, Naira against the US dollar at the black market closed at an average of N740 to a dollar on Thursday compared to N767/$1 on Wednesday.

In the peer-to-peer market, where most crypto traders exchange dollars for Naira, the exchange rate closed at N757/$1.