Data Shows Naira Depreciated by 6.43% in July

Nigeria’s exchange rate closed July 2024 at N1608.73/$1, marking a 6.43% depreciation on the official market for the month.

According to data from FMDQ, the naira performed at a four-month low in July, fluctuating between a low of N1,500.32 and a high of N1,621.12, breaching the N1,600 ceiling.

The depreciation occurred despite the efforts of the Central Bank of Nigeria (CBN) to save the official market from illiquidity through dollar sales.

In July, the CBN did at least three sales of foreign exchange (FX) to authorised dealers and one sale to Bureau de Change (BDC) operators as naira faced severe pressure. 

According to data from Nairalytics, FX turnover on the official market increased by 30% to $4.34 billion from $3.33 billion recorded in the previous month. 

According to circulars from the apex bank announcing the sales, the first occurred in the same week of July as the the CBN sold $122.67 million to 46 authorised dealers. 

Nairametrics/Hauwa Abu