The Nigerian naira’s struggles in the foreign exchange market persist, with a significant loss of N106.7 against the dollar in just 48 hours.
This decline is attributed to a decrease in FX supply, which led to the naira dropping to N1659.69 per dollar on Wednesday, a N0.72 loss from Tuesday’s rate of N1658.97.
*Naira’s Performance This Week*
– Monday: Gained against the dollar
– Tuesday: Dropped significantly by N106.05
– Wednesday: Further weakened, losing N0.72
The World Bank reports that the naira is among the worst-performing currencies in Africa, underscoring the need for urgent intervention ¹. Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the market, fluctuations continue unchecked.
Yemi Cardoso, Governor of CBN, reassured that Nigeria’s external reserves remain substantial, standing at $39.12 billion. This statement aims to calm market concerns and stabilize the naira’s value.
The naira’s volatility has significant implications for Nigeria’s economy, affecting trade, inflation, and overall economic growth. Stakeholders eagerly await effective measures to address these challenges and restore stability to the foreign exchange market.
