The Nigerian Naira suffered a significant decline, losing N72.58 against the US dollar in July 2024, according to the FMDQ financial market report. The foreign exchange turnover skyrocketed to $7.39 billion, representing a 10.02% increase from the previous month.
In Naira terms, the FX turnover stood at N11.48 trillion, surpassing the N10.01 trillion traded in June. The Naira’s depreciation led to an exchange rate volatility increase, with the local currency trading between N1,500.32 and N1,621.12 per dollar, compared to the previous month’s range of N1,473.66 to N1,510.10 per dollar.
Despite the Central Bank of Nigeria’s efforts, the Naira’s value against the dollar is expected to decline further in the next three months, according to the Business Expectations Survey report. However, the report predicts an appreciation in the Naira’s value within six months.
The forex market’s instability has raised concerns, with the Naira’s recent appreciation to N1570.14 per dollar at the official market offering a glimmer of hope. Nevertheless, the currency’s future remains uncertain, with the market awaiting the Central Bank’s next moves to stabilize the Naira.
