Naira Depreciates N1,454 as FX Demand Eclipses Market Supply
The transaction value of the naira depreciated against the US dollar as forex liquidity conditions tightened further on Wednesday at the official window.
The local currency is losing its value against the US dollar. In the last 10 days, the naira has lost N18 per dollar transaction, affecting companies that sought to settle foreign currency liabilities or acquire assets.
Updated FX data released by the Central Bank shows that the official rate touched an intraday high of 1460.5000 per dollar, reflecting forex market scarcity lingering on the day.
Some transactions were also conducted at an intraday low of 1449.9600, worsening by about N10 versus an intraday low on record the previous day.
The FX data trend suggests the market witnessed a substantial FX shortage, which has continued to reduce the transaction value of the local currency.
Eventually, the naira weakened by 0.46% to ₦1,454.18/$ in the Nigerian Foreign exchange market window and slipped 0.27% to ₦1,474/$ in the parallel market, signalling reduced demand for the local currency Dangote Cement Plunges as Investors Trim Shareholding
