Naira Depreciates Against Dollar, FX Turnover Hits $7.39 Billion in July
The Nigerian Naira has depreciated by N72.58 against the US dollar, according to the latest financial market report from the FMDQ. The report reveals that foreign exchange turnover transactions reached $7.39 billion at the close of the official trading window in July 2024, a significant increase from the previous month.
In Naira terms, the country’s FX turnover stood at N11.48 trillion in July, higher than the N10.01 trillion traded in the previous month. The dollar terms of FX market turnover in July recorded a 10.02 percent month-on-month increase from $6.72 billion in the prior month.
The spot exchange rate also increased by 4.88 percent to close at an average of 1,560.32 per dollar in July, up from 1,487.74 per dollar in June. This implies that exchange rate volatility has increased, with the local currency trading around N1,500.32 to N1,621.12 per dollar in July, compared to N1,473.66 to N1,510.10 per dollar in June.
The Central Bank of Nigeria’s Business Expectations Survey report released last week suggests that the Naira is expected to depreciate against the dollar in the next three months, but may appreciate in six months.
The increased turnover and depreciation of the Naira against the dollar may have significant implications for businesses and individuals in Nigeria, particularly those relying on foreign exchange earnings. As the country’s economy continues to evolve, it will be important to monitor the exchange rate and its impact on the economy.
