Naira Under Pressure: Losses Worsen on Official Market

On Tuesday, the value of the Nigerian Naira decreased further when compared to the United States dollar at the Investors and Exporters window. The Naira was exchanged for ₦462.00 against one US dollar.

This means that the Naira has decreased in exchange value by ₦0.39 or 0.08 per cent compared to the value it had on Monday. On Monday, the Naira was exchanged for ₦ 461.61 per dollar, but on Tuesday it dropped to ₦ 462.00 per dollar.

According to the data available on the website of FMDQ (where foreign exchange is officially traded) shows that the Nigerian currency reached its highest value of ₦440.00 per dollar and its lowest value of ₦463.00 per dollar during the day on Tuesday. And at the end of the day it was traded at ₦462.00 per dollar.

On Tuesday, the official exchange window saw a decreased in the amount of foreign exchange traded. The turnover went down by 15.61%, which means that on Tuesday $112.04 million worth of foreign exchange was traded as compared to $132.77 million that was traded on Monday

Naira decreased in value even further in the parallel market. This is due to ongoing scarcity of foreign exchange and an increase in the demand for it. The decreasing value of NGN in the parallel market is an indication of a difficult economic condition in the country.

In Uyo, local currency traders at the Udi street market reported that on Tuesday, the Nigerian currency (NGN) was being bought and sold at different rates. They said that the currency was being bought at N744.00 per United States dollar, and then sold at N750.00 per dollar. This is a slight increase from the exchange rate of N743.00 per dollar that was reported on Monday.

In the Abuja zone 4 market, currency dealers stated that on Tuesday, the  dollar was being bought at N743.00 and sold for a higher rate at N745.00 or above. This indicates that there is a demand for the dollar in this market and it is causing its value to increase in comparison to the Nigerian currency. This is a similar trend to the one reported in Uyo market.

CHECK DOLLAR TO NAIRA TODAY EXCHANGE RATE