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Exchange rate falls to lowest in 5 weeks as it closes in on N1,500/$1

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The exchange rate between the naira and the dollar fell to a six-week low on Monday, closing at N1,490.2/$1, just N10 shy of hitting N1,500/$1.

This is according to official data from the FMDQ, where currencies are traded officially. The exchange rate has remained stable throughout June, oscillating between N1,470 and N1,480/$1.

The latest slide closer to N1,500 will send jitters to currency watchers, as it represents a psychological ceiling that, when breached, might be perceived as a new wave of depreciation.

According to close-of-day data from the FMDQ, the exchange rate closed at N1,490.2/$1 at the official market on June 24, 2024. This is the lowest since May 17, 2024, when it closed at N1,497.33/$1.

Naijaonpoint projects that currency weakness could be imminent as we approach the summer holidays when Nigerians mostly fly out of the country for vacations.

Just last week, Naijaonpoint reported that Nigeria’s foreign exchange (FX) reserves surged to their highest level since March 28, 2024, marking a significant financial milestone that coincides with the longest period of stable exchange rate seen in over a year.

Meanwhile, the exchange rate for import duties collection by the Nigeria Customs Service (NCS) has stayed at N1474/$ in the last three weeks consecutively- the longest duration since January.

This is as the naira stabilises around N1450/$ to N1490 to the USD in the past few weeks following months of volatility since February 2024.

Checks on the customs exchange rate portal reveal that the FX rate for import duties collection has been adjusted only once this month- a decrease from N1482$ to the current figure.

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