The Naira exchange rate faced a setback in the foreign exchange (FX) markets as demand eclipsed total market supply amidst rising import appetite. The apex bank chief told a conference that the naira is currently undervalued.

In the autonomous FX market, the central bank of Nigeria has stopped the US dollar and other foreign currency supplies to influence the exchange rate – at least for more than 3 months. The apex bank decision came after a large devaluation of the naira in June, and a subsequent move to settle the forex backlog.

Yesterday, the local currency depreciated by 0.41% at the official market, closing at N882.24 to the US dollar from N878.61 on the previous day, data from the FMDQ platform revealed. Euro, British pounds and other primary currencies raped the Naira, pushing rates higher, market data suggests.

The exchange rate is predicted to worsen in 2024. Naira bears in the market’s estimated rate to cross N1000 due to FX challenges. In the parallel market, pressures on US dollar demand have persisted as January’s effects take a toll on the Exchange rate.

The Naira closed at N1357 against the US dollar amidst rising global oil prices in the black market as accretion into gross foreign reserves remains minimal compared with production volume.

In the global commodity market, West Texas Intermediate (WTI) crude futures advanced by 1.00% to $75.12 per barrel on Wednesday. Also, the Brent Crude increased by 0.70% to close at $80.11 per barrel. The outlook for the naira remains bleak based on investment banking firms projections for the year. Already, some fintech companies are trading exchange rates above N1,400