The naira has again depreciated against the United States dollar, with the exchange rate hitting N1637.59 at the close of trading on Tuesday, September 10, 2024.
According to data gathered from the Nigerian Autonomous Foreign Exchange (FMDQ), the naira was shown to have fallen by N14.63 against the dollar, down from N1622.96 on Monday.
The naira decrease marks a 0.90 per cent drop in the value of the naira against the dollar, thereby, making the exchange market more expensive for Nigerians to trade.
The FMDQ data also shows that the foreign exchange market expressed a significant turnover of $143.15m, pointing out a high level of trading price activity.
The currency also witnessed a chaotic trading session against the dollar on Tuesday, with the spot rate closing at N1637.59, a little appreciation of N3.61 from the opening rate.
The forward rate told a different story, with a high of N1,655.00 and a low of N1,499.00, showing significant fluctuations in the market space.
Before now, specifically on Friday, September 6, 2024, the local currency made a strong comeback in the official foreign exchange market, appreciating by 2.9 per cent against the formidable dollar.
This growth was driven by a significant increase in dollar supply, totaling $245.17m,
where naira gained ground as the dollar was traded at N1,593.32 on Friday, compared to N1,639.41 on Thursday.
This recent development aligns with the latest drop in global oil prices, which currently sell below $70 per barrel.
With FMDQ, tracking official currency transactions, the exchange rate has remained moderately volatile, flickering over and under the ₦1,600 range over recent days.
The former Chief Economist of Zenith Bank Marcel Okeke informed newsmen earlier that the combination of pipeline vandalism, organized youth involvement, and the sudden fall in oil prices has severely endangered the oil sector, which is important for oil exploration and production.
Nigeria’s economy over the years, have solidly relied on the oil sector, which generates over 80 per cent of government revenue, and data shows that approximately 90 per cent of export earnings comes to the federal government account.
Since mid-July, the naira has fluctuated within the N1,600 rate, with the currency hitting a high of N1,660 before closing at N1,637.
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