The official exchange rate of the naira against the dollar ended its three-day winning streak, falling by 4.26% to N1602.43 per US dollar on Tuesday, March 5, 2024, compared to N1534.19/$1, according to data published by FMDQ.

This decline coincides with the announcement from the cryptocurrency trading platform Binance that it will cease trading activities involving the Nigerian currency.

The drop on Tuesday marks the first in three days, indicating that demand pressures persist in the forex market as supply remains insufficient.

FX Rates across markets 

According to data from the Nigeria Autonomous Foreign Exchange Market (NAFEM), where forex is officially traded, the domestic currency depreciated by 4.26% at the end of trading, closing at N1,602.43 to a dollar at the close of business.

This represents a loss of N68.24 compared to the N1,534.19 closing on Monday.

The intraday high was N1,652.40/$1, while the intraday low was N1,450/$1, representing a spread of N202.40/$1.

According to data obtained from the official NAFEM window, forex turnover at the close of trading was $291.78 million, representing a 63.26% increase compared to the previous day.

Forex turnover has averaged over $200 million in the past week as trading continues to pick up in the official market.

Meanwhile, on the parallel market, the Naira depreciated against the dollar as it was quoted for N1,630/$1, reflecting 1.84% compared to the previous day’s quote of N1,600.

See full report at Nairametrics