The Nigerian currency suffered a significant setback yesterday, plummeting by N57.13 against the United States dollar at the official foreign exchange market.
According to data from the FMDQ, the Naira exchanged for N1637.59 per dollar, a stark contrast to Monday’s rate of N1580.46. This reversal of fortune comes on the heels of two consecutive days of appreciation.
At the parallel market, the Naira also weakened, shedding N5 to trade at N1660 per dollar, up from N1655 on Monday.
Industry experts point to market forces as the primary driver of the currency’s volatility. The Central Bank of Nigeria’s (CBN) recent intervention, which saw $20,000 sold to licensed Bureau De Change operators at N1580 per dollar last Friday, appears to have provided only temporary respite.
“The depreciation underscores the ongoing challenges in the foreign exchange market,” said a financial analyst, who preferred anonymity. “The CBN’s interventions, while helpful, have not addressed the underlying issues driving the Naira’s instability.”
The development has sparked concerns among stakeholders, who fear that the Naira’s slide could inflationary pressures and hinder economic recovery.
As the Naira struggles to regain its footing, market watchers eagerly await the CBN’s next move to stabilize the currency.
Market Data:
-
Official Market: N1637.59/USD (down from N1580.46)
-
Parallel Market: N1660/USD (down from N1655)
-
Change: N57.13 (official), N5 (parallel)
