In spite of recent efforts by the Central Bank of Nigeria to bolster the foreign exchange market, the naira concluded Thursday’s trading on the Investor & Exporter forex window at N996.75/$, marking a 13.95% drop from its Wednesday closing at N874.71/$.
The naira has now depreciated by 27.75% since the week’s commencement at N780.23/$, as reported by FMDQ OTC Securities Exchange.
Despite initially strengthening against the dollar last week, following news of the central bank clearing backlog, the naira has experienced a consistent decline in both official and parallel markets.
In 2023, it has lost approximately 40% of its value, earning the unenviable distinction of being one of the poorest-performing African currencies, according to the World Bank.
In the parallel market, the currency’s value has fallen from N950/$ on Friday to nearly N1,140/$ on Thursday, reflecting a 20% decrease, according to Bureaux De Change operators interviewed by The PUNCH.
Traders like Kadri and Awolu disclosed rates of N1,100 and N1,140, respectively.
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, attributed the dollar’s ascent to resistance from those who bought it at higher prices, creating market reactions and reluctance to incur further losses.
Expressing concern over the currency’s decline, the presidency indicated plans to implement policies aimed at fortifying the local currency.
Dr. Tope Fasua, Special Adviser to the President on Economic Matters, assured that the government, under the leadership of the President, is poised to introduce policies that will surprise those speculating against the currency’s stability.
