The Naira experienced a depreciation of N72.58 against the U.S. dollar in July 2024, with Foreign Exchange (FX) turnover transactions reaching $7.39 billion at the close of the official trading window, according to the FMDQ financial market report.
In Naira terms, FX turnover amounted to N11.48 trillion in July, surpassing the N10.01 trillion recorded in June. This reflects a 10.02 percent increase in dollar terms, with FX market turnover rising by $0.67 billion from $6.72 billion in the previous month.
The Naira's value against the dollar weakened, with the spot exchange rate increasing by 4.88 percent, closing at an average of N1,560.32 per dollar in July, compared to N1,487.74 per dollar in June. This depreciation indicates heightened exchange rate volatility, as the Naira traded within a range of N1,500.32 to N1,621.12 per dollar in July, compared to N1,473.66 to N1,510.10 per dollar in June 2024.
Additionally, the Naira appreciated by 62 basis points, closing last week at N1,570.14 per dollar in the official market. The turnover for the week stood at $120.81 million, with intra-day exchange rates reaching a high of N1,606 per dollar and a low of N1,496 per dollar.
The Central Bank of Nigeria's recent Business Expectations Survey suggests a further depreciation of the Naira against the dollar over the next three months but anticipates potential appreciation within six months.
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