Naira depreciates against US dollar in foreign exchange market ahead of Christmas

The naira weakened against the US dollar in the foreign exchange market on Friday as businesses in Nigeria closed for Christmas celebrations.

According to official FMDQ data, the Nigerian naira depreciated by 2.71% against the US dollar to 885.88 naira to the dollar.

The naira loss on Friday amounted to a depreciation of 23.97 naira or 2.71 percent compared to Thursday's closing price of 861.91 naira.

Similarly, the Naira depreciated in the parallel foreign exchange market where foreign exchange is sold informally.

Accordingly, the parallel market exchange rate declined by 0.16% and was trading at 1,230 Naira to the dollar on Friday, while peer-to-peer traders were trading at around 1,163.35 Naira to the dollar.

This follows a 22% decline in foreign exchange trading volume to $92.16 million.

This Christmas means more money will be spent on dollar-related purchases for Nigerians.

The Naira has been fluctuating in the foreign exchange market since June 14, 2023, when the apex bank introduced exchange reforms.

However, CBN Governor Olayemi Cardoso recently assured Nigerians that the naira is expected to appreciate in the foreign exchange market in 2024.

Source: dailypost.ng