Nigerian Naira Faces Further Depreciation Against US Dollar
Reports indicate that the Nigerian Naira has experienced another decline in value against the US Dollar in the foreign exchange market.
Wednesday’s Exchange Rates:
According to data from the official FMDQ market, the Naira traded at a rate of N874.71 per US Dollar on November 8, witnessing a drop of N65.51 compared to the previous day’s rate of N809.2 per US Dollar.
Parallel Market Dynamics:
In the parallel market, the Naira reportedly traded at N1,110 per US Dollar on the same day, slightly higher than the rate of N1,100 observed the day before.
Insights from Bureau de Change Operator:
Dayyau Mistila, an operator at a Bureau de Change in Zone 4 Abuja, shared insights on the situation, stating that Nigerians purchased Dollars at a rate of N1,100 on Wednesday.
“We sold dollars at N1110 on Wednesday and bought it at 1100 per Dollar,” Mistila explained.
Recent Forex Developments and Central Bank Intervention
Naira’s Recent Strength:
Last week, the Naira had shown signs of strength against the US Dollar after the Central Bank of Nigeria (CBN) cleared forex backlogs for some commercial banks and airlines.
Friday’s Positive Movement:
On the last Friday of the previous week, the Naira regained some value against the US Dollar in the parallel market, with the local currency exchanging below N1000.
Celebration and Recent Gains:
The Naira had been on a positive trajectory in the last few weeks, gaining ground against the widely patronized US currency.
This development was particularly noteworthy as the Naira had previously exchanged above N1000.
The currency had experienced a significant improvement, going from N1,150 in the parallel market last week Thursday to N950 the following day (Friday) evening and even lower in the morning.
Public Reaction:
Nigerians celebrated these positive developments as the local currency demonstrated consistent recovery in the past few days.
In conclusion, despite recent gains, the Naira’s struggle against the US Dollar continues, reflecting the complexities of the foreign exchange market.
The volatility in the foreign exchange market remains a concern for Nigerians, impacting various aspects of the economy.
The Central Bank’s interventions, while providing temporary relief, highlight the need for sustained efforts to address the underlying issues affecting the Naira’s value.
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