The naira closed at N1,596.60 per dollar as dollar liquidity decreased, marking a 1.66% drop from Friday's rate. Daily FX market turnover fell 14.80% to $102.93 million, while the parallel market rate was quoted at N1,610. Analysts suggest sustained high interest rates amid ongoing inflation.
On August 26, 2024, the Nigerian naira closed at 1,596.60 against the US dollar, reflecting a notable decline in dollar liquidity within the official foreign exchange market. This represented a decrease of 1.66% from the previous closing rate of 1,570.14 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday.
Recent data from FMDQ Securities Exchange Limited revealed a significant drop in trading volume, with daily turnover decreasing by 14.80% to $102.93 million, down from $120.81 million. On the same day, the naira experienced fluctuations, with intraday highs reaching 1,610 naira per dollar, while the intraday lows dipped to 1,500 naira.
In the parallel market, the naira appreciated slightly, trading at 1,610 naira per dollar compared to 1,615 naira on Friday. The exchange rate at the NAFEM window closed at 1,570.14 naira per dollar, marking a 0.62% appreciation over the week. However, the year-to-date depreciation against the dollar remained significant at 42.23%.
Analysts from Coronation Asset Management indicated that although Nigeria's fixed-income markets are currently experiencing an influx of liquidity, inflation concerns persist. They anticipate that the Central Bank of Nigeria may maintain elevated rates for the next few months to address ongoing economic challenges. As the naira continues to navigate these turbulent waters, market participants are closely monitoring the situation for further developments.
Source: Business Day
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