The Nigerian Naira experienced a slight decline in value against the US Dollar on Wednesday, trading at N1,631.17/$ at the official market.

This represents a 0.04% loss, or 72 kobo depreciation, compared to Tuesday’s rate of N1,630.45/$.

According to data from the FMDQ Exchange, the total daily turnover reduced significantly to $128.98 million, down from $242.59 million recorded on Tuesday.
The Naira traded between N1,684 and N1,575 against the dollar at the Investor’s and Exporter’s (I&E) window.

The decline in Naira’s value is attributed to increased demand for foreign exchange, low foreign exchange inflows, and economic uncertainty.

The reduction in daily turnover suggests decreased market activity, potentially due to reduced foreign investment, lower export earnings, and caution among investors.
The depreciation of the Naira may lead to higher import costs, increased prices of goods and services, and reduced purchasing power for consumers.

However, a weaker Naira can benefit exporters, as Nigerian goods become more competitive globally, and foreign investors, as investments in Nigeria become relatively cheaper.

This development comes amid ongoing economic challenges and uncertainty in the country.