The naira has continued its depreciation against the US dollar in the foreign exchange market, despite a surge in FX transaction turnover.
The FMDQ data made available showed that the naira weakened to N1532.58 against the dollar on Tuesday, down from N1523.85 on Monday. This represents an N8.73 depreciation from the previous day.
This decline occurred despite an increase in foreign currency transaction turnover, which rose to $188.19 million on Tuesday from $133.46 million on Monday.
Similarly, in the parallel foreign exchange market, the naira depreciated to N1540 on Tuesday from N1530.
Further analysis shows that from last Friday to Tuesday, the naira lost N22.91 in the official market and N15 in the parallel market, despite an increase in Nigeria’s external reserves to $34.66 billion as of June 4, 2024.