The Nigerian currency ended the week on a sour note, plummeting to N1,652.25 per dollar at the foreign exchange market on Friday.
According to data from the FMDQ, this represents a N6.5 depreciation from Thursday’s rate of N1,645.45.
At the black market, the naira traded at N1,740 per dollar on Friday, a slight decline from the N1,738-N1,745 range recorded the previous day. This development underscores the currency’s persistent struggles despite efforts by the Central Bank of Nigeria (CBN) to stabilize the exchange rate.
A review of the week’s performance shows that the naira experienced more depreciation than appreciation. The CBN’s interventions, aimed at bolstering the currency, seem to have had limited impact. As the market continues to grapple with volatility, stakeholders remain concerned about the long-term implications for the economy.
The depreciation of the naira has significant implications for businesses, importers, and individuals reliant on foreign exchange. With the currency’s value continuing to erode, experts predict increased pressure on prices and potential inflationary pressures. The CBN faces an uphill task in reversing the trend and restoring stability to the foreign exchange market.
