Analysis: Has Nigeria’s exchange rate hit “Price Discovery”?

Two weeks of data from the FMDQ NAFEX closing rate suggest a new pattern is evolving with Nigeria’s exchange rate as Nigerians grapple with local currency depreciation.

The exchange rate between the naira and dollar closed at N1,497/$1 on Friday, May 17, 2024, representing a 2.1% depreciation week to date. It was, however, a 2.5% gain from the N1,593.9 recorded a day earlier, which was the weakest since March 20 this year.

Daily turnover for the week also rose from $608.5 million to $991.9 million, representing a 63% increase week on week.