Naira depreciates against dollar by 5.8% in April

The Nigerian Naira closed the month of April at N1,390.96/$1, representing a 5.8 per cent decline from the month’s opening rate of N1,309.39, and a significant drop from its mid-month of N1,072.74 against the Dollar.

According to data from FMDQ, the exchange rate gained marginally on Tuesday April 30th, closing at N1,390.96/$1 compared to N1,419/$1 a day earlier.

The naira rallied against the dollar in the first half of April as a slew of central bank policy actions appear to have stifled speculation. But things turned worse after the IMF Spring meetings, falling every day since the apex bank addressed concerns over the external reserves.

On the parallel market, the unofficial rates quoted were slightly stronger, showing a range of N1,350 to N1,380/$1.

The intra-day trading witnessed highs of N1,450 and lows of N1,200, showcasing extreme volatility.

Forex turnover today was significantly lower at $225.36 million, a sharp fall from the $309 million recorded last Friday.

For the month of April, total forex turnover in the official market was reported at $3.94 billion, a significant decrease from the $5 billion recorded in March.

This suggests that the official market has seen a substantial reduction in forex activity.

The external reserves, however, have continued their slow upward trend, now standing at $32.13 billion, marginally higher than the $32.109 billion reported last week.

Central Bank Governor, Yemi Cardoso, stated that the volatility in exchange rates is expected to continue due to market forces suggesting that there will be “ups and downs” with rates.