Naira depreciates further on forex market

The dollar-to-naira exchange rate continued its depreciation at the foreign exchange market on Monday.

FMDQ data showed that the Nigerian currency depreciated to N1586.71 against the dollar on Wednesday from N1548.76 on Tuesday.

This represents a loss of N37.95.

Similarly, at the black market, the naira weakened further to N1,585 per dollar on Wednesday from N1,580 the previous day.

DAILY POST reports that the naira has been on a depreciation streak since last week, despite the Central Bank of Nigeria’s release of foreign exchange to authorised dealers.

Bismarck Rewane, Chief Executive of Financial Derivatives, in a recent interview with Channels TV, described the sharp decline of the naira as

a reaction to CBN’s interest rate hike by 50 basis points to 26.75 per cent on Tuesday.

CBN last week disclosed that the country’s foreign exchange is under pressure due to a surge in demand amid the summer holidays.