The Nigerian naira continued its downward trend against the US dollar at the official exchange window, closing at N1,309.88 on Thursday, March 25th.
This represents N1.36 depreciation from the previous day’s rate of N1,308.52.
The currency has been on a six-day losing streak in the official market, the longest since its devaluation in January, with a marginal 0.1% drop against the dollar on Thursday, contributing to a 2.39% loss for the month.
Since June, the naira has depreciated over 60% following two devaluations intended to make the currency more market-driven to attract foreign investment.
However, in the parallel market, the naira saw a 2.14% appreciation, recovering from a six-day loss to trade at N1,400 to the dollar on Friday, March 26th, after a significant dip to N1,450 the previous day.
Despite the Central Bank of Nigeria’s (CBN) distribution of $15.83 million to 1,583 Bureau De Change operators on March 22nd, the naira has broken through critical support levels at N1,200/$ and N1,300/$, indicating a reduced influence of the CBN in the foreign exchange market, as reported by Naijaonpoint.
FMDQ Securities reported a substantial 61.02% increase in daily turnover to $318.08 million on Thursday, March 26th, marking a recovery from a cumulative loss of $206.9 million since the start of the month.
This turnover suggests a dynamic and responsive foreign exchange market despite the naira’s recent volatility.