BY Milcah Tanimu

Despite efforts by the Central Bank of Nigeria to bolster the foreign exchange market, the naira concluded trading on the Investor & Exporter forex window at N996.75/$, marking a 13.95% drop from the previous day’s closing rate of N874.71/$. This represents a significant 27.75% decrease since the beginning of the week, starting at N780.23/$, according to information from FMDQ OTC Securities Exchange.

Following a brief strengthening against the dollar last week due to the central bank addressing backlog issues, the naira has been steadily depreciating in both the official and parallel markets. In 2023 alone, the naira has lost approximately 40% of its value, earning the dubious distinction of being one of the worst-performing African currencies, as reported by the World Bank.

In the parallel market, the depreciation trend continues, with the currency falling from N950/$ to nearly N1,140/$, signifying a 20% decline, according to Bureaux De Change operators interviewed by The PUNCH. Traders, such as Kadri and Awolu, confirmed the prevailing rates, indicating a challenging situation with the dollar priced at N1,100 for selling and N1,140 for buying.

Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, explained that the dollar’s strength against the naira is partly due to speculators reacting to perceived market instability and resistance from individuals who purchased the dollar at higher rates and are unwilling to incur further losses.

Expressing concern over the currency’s decline, the presidency has announced plans for policies aimed at reinforcing the local currency. Dr. Tope Fasua, Special Adviser to the President on Economic Matters, emphasized the government’s commitment to implementing measures to stabilize the currency and surprise those speculating on its depreciation.