Elizabeth O.
Naira Falls by 17% to N951/$, Central Bank Struggles to Stabilize Currency
This depreciation occurred alongside a 4.94% decrease in the supply of dollars, which amounted to $135.58 million compared to the previous figure of $142.63 million.
Data obtained from the FMDQ Securities Exchange indicated that the naira suffered a loss of N144.49 against the dollar, concluding Tuesday’s trading at N806.73/$. On the day in question, the naira commenced trading at N828.33/$, fluctuating throughout the day with a high of N1159.10/$ and a low of N701.00/$ before finally closing at N951.22/$. The total dollar turnover for Wednesday was $135.58 million.
Despite efforts made by the Central Bank of Nigeria to stabilize the national currency, the naira’s volatility in the market persisted. Recent reports revealed that Nigeria’s foreign exchange reserves decreased by $1.6 billion to $32.97 billion as the central bank attempted to unify the country’s foreign exchange rates, thereby creating additional pressure on the naira.
The Economist Intelligence Unit highlighted in its recent Africa Outlook report that Nigeria’s monetary policy lacks support, indicating that the naira will continue to face pressure. The central bank’s ability to adequately supply the market or address the backlog of foreign exchange orders is limited, which may cause foreign investors to feel unsettled.
