The naira continued its decline in the unofficial market on Wednesday, with Bureau De Change operators in Lagos and Abuja reporting a trading rate of N1,705 to the U.S. dollar.
In Lagos, BDC operator Aliyu Sani noted that the dollar was sold for N1,705 and bought at N1,695. Meanwhile, in Abuja, currency trader Suraju Ajao indicated a slightly lower exchange rate, with dollars selling for N1,700 and being purchased at N1,690.
On the official Nigerian Autonomous Forex Exchange Market, hosted by FMDQ Securities, the naira closed at N1,659.69 per dollar, marking a slight 0.04 percent depreciation from the previous day’s closing rate of N1,658.97. Official data showed the naira fluctuating between a high of N1,682 and a low of N1,562.97 per dollar.
Market activity saw a notable decline, with daily turnover dropping from Tuesday’s $217.86 million to $177.10 million.
Earlier this week, the naira faced another setback, falling to N1,700 to the dollar on Monday, reflecting a 0.29 percent decline from last Friday’s rate of N1,695.
The World Bank has recently highlighted the naira as one of the worst-performing currencies in Sub-Saharan Africa for 2024. As of August, the naira had depreciated by approximately 43 percent year-to-date, alongside the Ethiopian birr and the South Sudanese pound.
This ongoing depreciation is largely attributed to increased demand for U.S. dollars in Nigeria’s parallel market, limited foreign currency inflows, and slow disbursement of foreign exchange by the Central Bank of Nigeria.
