In a disconcerting trend, Nigeria’s currency, the Naira, faced a significant setback against the US Dollar in the foreign exchange markets, with the latest data from the official FMDQ market revealing a notable decline.
As of Wednesday, the Naira closed at 996.75 Naira per US Dollar, marking a substantial decrease of 122.01 Naira from the previous day’s rate of 874.71 Naira per US Dollar. The alarming depreciation continued in the parallel market, where the Naira exchanged for 1140 Naira per US Dollar on Thursday, compared to 1100 Naira the day before.
Reports from Bureau de Change operators, such as Dayyau Mistila from Zone 4 Abuja, unveiled the harsh reality faced by Nigerians in the foreign exchange market. Mistila disclosed that the exchange rate had reached N1400 per US Dollar on Thursday, a stark contrast to the N1100 rate just a day earlier.
“We sold dollars at N1140 on Thursday and bought it at 1130 per Dollar, the figure remained the same this morning(Friday),” Mistila stated, emphasizing the persistently challenging conditions.
This recent decline follows a brief period of Naira strength against the Dollar, which was witnessed when the Central Bank of Nigeria intervened by clearing forex backlogs for selected commercial banks and airlines last week. However, the current situation suggests that these efforts may have provided only temporary relief, raising concerns about the overall stability of the Naira in the foreign exchange landscape.
Economic analysts are closely monitoring the situation, with some attributing the latest slump to various factors, including global economic uncertainties and domestic challenges. As stakeholders assess the implications, there is a growing need for a comprehensive strategy to address the root causes and safeguard the Naira’s stability in the face of ongoing economic fluctuations.