The Nigerian Naira depreciated by N72.58 against the U.S. dollar as the country’s Foreign Exchange (FX) market saw a notable rise in trading activity. Data from the FMDQ financial market report reveals that FX turnover transactions surged to $7.39 billion at the close of the official trading window, marking a significant increase compared to the previous month.
In terms of Naira, the FX turnover in July reached N11.48 trillion, higher than the N10.01 trillion traded in June 2024. This increase in turnover reflects growing activity in the country’s FX market as businesses and investors engage in foreign currency transactions.
When looking at the turnover in dollar terms, there was a 10.02 percent ($0.67 billion) rise month-on-month, moving up from $6.72 billion recorded in June to $7.39 billion in July.
The Naira’s depreciation was notable as the spot exchange rate climbed by 4.88 percent, reaching an average of 1,560.32 per dollar in July compared to 1,487.74 per dollar in June. This shift indicates greater volatility in the exchange rate, with the local currency trading between N1,500.32 and N1,621.12 per dollar, compared to a range of N1,473.66 to N1,510.10 in the previous month.
By the close of last week, the Naira was valued at N1,570.14 per dollar at the official market, gaining 62 basis points. During intra-day trading, the Naira hit a high of N1,606 per dollar and a low of N1,496 per dollar, demonstrating the fluctuations in the currency’s value.
According to the Central Bank of Nigeria’s Business Expectations Survey, the Naira is expected to continue facing depreciation against the dollar in the next three months, though some optimism remains for a potential appreciation within the following six months.
