The Nigerian naira fell by 5.5% in the official market on Thursday, with the dollar quoted at N1,649.76, down from N1,558.75 the previous day, according to data from the FMDQ Securities Exchange. In the parallel market, the naira traded at N1,665 per dollar on Friday, losing N5 from earlier in the week as demand for dollars surged for travel, education, and medical expenses.
Traders in Abuja and Onitsha reported buying dollars at N1,650 and selling at N1,670. The depreciation in the naira is being driven by end-user demand for Basic Travel Allowances (BTA), Personal Travel Allowances (PTA), school fees, and medical bills.
On Wednesday, the naira recorded a 5.06% gain on the official foreign exchange market, following an increase in dollar supply to $221.24 million in one trading day.
Meanwhile, Nigeria’s external reserves grew by $490 million within a week, reaching $36.73 billion on September 10, 2024, thanks to the Debt Management Office’s (DMO) successful issuance of domestic dollar bonds. The government raised $500 million as part of a $2 billion bond issuance to stabilize the economy.
Credit: Businessday NG (Text Excluding Headline)
