Naira prospects dim as inflation rate hit three decade-high

The Nigerian currency weakened in the official market while Nigeria’s headline inflation readings rose to a three-decade high in May, worsening the naira’s fortunes in the short term.

Data from the FMDQ Securities Exchange Limited shows the naira lost 0.45% of its value after trading on Friday, with the dollar quoted at N1,482.72, weaker than the N1,476 posted on Thursday at the Nigerian Autonomous Foreign Exchange Market.

Voluntary sellers and buyers of dollars increased their supply by 96.6% to $183.47 million on Friday, up from $92.68 million on Thursday.