Naira has fallen to a three-week low on the official market.
NewsOnline Nigeria reports that the naira depreciated to its lowest level in three weeks on the official market on Wednesday, June 5, 2024.
This Nigeria news platform learnt that closing at N1,488.60/$1, the naira experienced a 0.78% drop from the previous day on the NAFEM window, according to the latest data from the FMDQ Securities Exchange.
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Volatile FX market
The naira’s latest slump, although marginal, affirms the high volatility of the local currency. Over the past three weeks, the naira has experienced a roller-coaster trajectory.
On May 27, the naira saw its highest strength within the last three weeks, trading at N 1,173.88/$, after a 14.09% appreciation.
However, the gains were short-lived as the currency quickly depreciated again. The sharp contrast highlights the currency’s volatility in the face of economic pressures.
Aside from the dip in value, the foreign exchange (FX) turnover rate today was reported at $205.43 million, a 13.32% decrease compared to the previous day.
This drop in the FX turnover rate, coupled with the naira’s depreciation, may signal a potential lack of confidence among traders and investors in the currency’s stability.
