The naira depreciated further against the US dollar at the official window on Tuesday, closing at an all-time-low of N1,482.
This represents a decline of 9.93 per cent from its Monday rate. The naira closed at N1,348.63 per dollar on the official market, also known as NAFEM market on Monday.
Following the drop in the value of the naira, FMDQ Securities Exchange, which calculates the exchange rate of the country, on Monday, also reviewed the methodology used for the calculation of its rates, in a move that analysts have described as technical devaluation of the naira.
In a market notice, FMDQ stated, “This revision aims to address recent fluctuations and challenges encountered in the Nigerian Foreign Exchange (‘FX’) Market.”
It noted that the new measures taken would ensure that NAFEX and NAFEM rates accurately reflect market conditions.
“These revisions are focused on enhancing the accuracy and reliability of the NAFEX and NAFEM rates determination process, with a focus on data availability and integrity involving a rigorous data validation process, including tolerance checks which shall be applied by FMDQ Exchange, subject to internal policies and procedures,” the notice indicated.
Meanwhile, on the parallel market, the naira was stable at N1,450/$ on Tuesday, while it exchanged at N1,439.5/$ at the peer-to-peer market.