Naira weakens further, loses 94.87% in 5years

Naira, Nigeria’s currency, which continued its depreciation on Monday, is said to have lost 94.87 in five years according to Bismarck Rewane, managing director/chief executive officer of Financial Derivatives Company Limited.

After trading on Monday, naira weakened marginally by 0.04 percent as the dollar was quoted at N436.50/$ compared to N436.33 per dollar quoted on Friday at the Investors and Exporters (I&E) forex window, data from the FMDQ said.

Most foreign exchange dealers who participated at the FX auction on Wednesday maintained bids between N425.00 (low) and N437.00 (high) per dollar.

The daily foreign exchange market turnover increased by 51.13 percent to $99.78 million on Monday from $66.02 million recorded on Friday.

In his presentation at Lagos Business School (LBS), Rewane pointed out the causes of naira depreciation, which included market structure, restrictive policies, low oil sales and revenue, rationing of forex supply, and capital flight.