Naira continues to depreciate against dollar despite surge in FX reserves

The naira continued its depreciation against the dollar despite a surge in foreign exchange reserves.

FMDQ data showed that the naira depreciated slightly to close at N 1485.53 against the dollar on Friday from N 1485.36 traded on Thursday.

This represents a marginal N0.17 loss against the dollar compared to the 1485.36 traded the previous day.

Meanwhile, the naira remained flat at the parallel market at N1490 against the dollar, the same as the previous day.

In the week under review, the naira has dropped N2.81 since Friday last week when it closed at N1482.72.

For weeks now, the naira has maintained its N1480 mark against the dollar at the official foreign exchange market.

The development comes despite the surge in Nigeria’s foreign exchange reserves in the last two months to $33.58 billion as of June 19, 2024, according to the Central Bank of Nigeria data.

This is as the FX transactions turnover at the official market also increased to $193.50 million on Friday from $176.20 million on Thursday.