Naira returns to depreciation despite surge in Nigeria’s external reserves

The naira has returned to depreciation against the dollar in the foreign exchange market despite the increase in Nigeria’s external reserves.

FMDQ data showed that the naira depreciated to N1523.85 against the dollar on Monday from N1509.67 traded last Friday.

This represents N14.18 loss against the dollar compared to the N1509.67 traded on Friday.

Similarly, the naira depreciated to N1530 per dollar at the parallel foreign exchange market on Monday from N1525 on Friday.

The development comes despite the rise in Nigeria’s external reserves to $34.66 billion as of July 4, 2024.

Also, FMDQ data showed that FX transaction turnover was $133.46 million on Monday, up from $116.88 million last Friday.

The naira crisis at the forex market has continued to impact Nigeria’s economy negatively. This is further compounded by the hike in the prices of foods in Nigeria. The country’s food inflation stood at 40.66 per cent in May 2024.