Naira Depreciates Further at Black Market, Exchanges at N425

• Naira Depreciates Further at Black Market, Exchanges at N425

The Nigerian currency depreciated further on Wednesday against the US dollar at the black market as scarcity persists.

The Naira was exchanged at N425 to a US dollar against the N420 it traded on Tuesday.

However, in some parts of Lagos State, the local currency was trading at N420 amid weak demand as the lockdown weighs on business operations.

On the Investors and Exporters (I&E) forex window, the naira was exchanged at N385.07 to a US dollar, representing a 0.17 percent gain when compared to N385.71 it traded on Tuesday.

Nigerian foreign reserves declined to $33.79 billion in April as the foreign revenue plunged with falling oil demand due to the COVID-19 pandemic. This declined in revenue is expected to hurt the Naira value and prevent the central bank from supporting the local currency as usual.

Therefore, the Naira is expected to drop to around N400 a US dollar considering the current weak liquidity predicted to worsen once businesses resume operations.