The naira experienced a minor depreciation against the dollar at the official market on Tuesday, trading at N1,476.95 per dollar.
This represents a loss of 83 kobo or 0.06 percent compared to the previous trading day’s rate of N1,476.12 per dollar, according to data from the official trading platform of the FMDQ Exchange.
Despite the depreciation, trading volumes saw a significant uptick. On Tuesday, the volume of currency traded increased to $236.99 million, a substantial rise from the $121.87 million recorded on Monday. This indicates heightened activity and possibly increased demand in the foreign exchange market.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the naira exhibited a wider trading range, fluctuating between N1,500.00 and N1,362.15 against the dollar. This variability highlights the ongoing volatility and pressures within the forex market.
The slight decline in the naira’s value underscores persistent economic challenges and the complex dynamics of demand and supply affecting the foreign exchange market.
Market analysts suggest that these fluctuations may continue as the country navigates its economic policies and external financial conditions.