Despite the increase in Nigeria’s foreign reserves, data from the FMDQ has shown that the Naira has plunged further against the Dollar at the foreign exchange market.
The Nigerian currency fell to N1523.85 per Dollar on Monday, down from N1509.67 traded last Friday, representing a loss of N14.18.
On Monday, the Naira, at the parallel foreign exchange market, further depreciated to N1530 per Dollar from N1525 on Friday.
The drop comes despite the surge in Nigeria’s external reserves, which stood at $34.66 billion as of July 4, 2024.
According to FMDQ data, FX turnover was $133.46 million on Monday, up from $116.88 million last Friday.
The ongoing naira crisis at the forex market substantially negatively impacts Nigeria’s economy. This is further exacerbated by the surge in food prices in Nigeria, with the country’s food inflation reaching a staggering 40.66% in May 2024.