The FX rate between the naira and the US dollar declined to a six-month low of N1,625.88 per dollar in the official market on Wednesday, September 4, 2024, amid low turnover.

The naira’s crash is the lowest exchange rate since March 8, 2024, when it traded at N1,627.4 per dollar.

Data from the FMDQ Exchange shows that the naira’s fall on September 4, 2024, represents a 0.89% fall from the previous day’s rate of N1,611.34 per dollar.

Traders in the official market quoted the naira at a high of N1,640 per dollar and a low of N1,400, representing a wide margin in the FX market.

The foreign exchange turnover for September 4, 2024, stood at $205.76 million, a marginal decline of 1.84% compared to the previous day’s record of $209.61 million.

Experts believe that the drop in the FX rate shows a disturbing pattern for the naira.

The Nigerian currency plummeted amid a hike in petrol prices by the Nigerian National Petroleum Company Limited (NNPCL), adding to the acute shortage of the product nationwide.

Naira depreciation sets amid low dollar supply

A previous report by Legit.ng disclosed signs that another round of naira depreciation has begun following increased demand amid a growing supply gap.

Meanwhile, in the parallel segment of the foreign exchange market, the naira appreciated to trade at N1,595 per dollar as of Wednesday, September 4, 2024.

Analysts predict more depreciation

Financial analysts believe the naira's volatility will continue as more people seek funds for summer travel, school fees, and medical trips abroad.

Janet Ogochukwu, banker and financial analyst, disclosed that the pressure on the naira is due to importers’ demands following the 150-day duty-free import window provided by the Nigerian government.

“There is a lot of demand by importers seeking to beat the deadline for importing essential food items into the country. I am sure the pressure on the local currency will continue until December, marking the lapse of the duty-free import window,” she said.