The naira continued its downward spiral against the dollar at the foreign exchange market following another round of fuel price increases by the Nigerian National Petroleum Company Limited.
According to data from the FMDQ, the naira weakened significantly, closing at N1625.
13 per dollar on Wednesday, compared to N1561.76 exchanged on Tuesday.
Foreign exchange market turnover also witnessed a decline, with daily transactions dropping to $170.60 million on Wednesday from the $253.
68 million recorded on Tuesday.
An industry insider, speaking anonymously, commented, “The back-to-back price hikes will likely add more pressure on the already volatile exchange rate.
”A market analyst also noted, “We’re seeing the direct impact of NNPCL’s fuel price adjustments on the naira.
With each increase, businesses and consumers face higher costs, which in turn affects demand for foreign exchange.
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