In spite of recent efforts by the Central Bank of Nigeria to reinforce the foreign exchange market, the naira concluded trading on Thursday at N996.75 per dollar in the Investor & Exporter forex window, marking a 13.95% decrease from the N874.71/$ rate observed on Wednesday.
The week began with the naira at N780.23/$, and as of now, it has depreciated by 27.75%. This data is sourced from the FMDQ OTC Securities Exchange.
Despite a brief strengthening against the dollar last week following news of the central bank clearing some backlog, the naira has experienced a consistent decline in both the official and parallel markets.
In 2023 alone, the naira has lost approximately 40% of its value, earning it the designation of one of the poorest-performing African currencies by the World Bank.
The parallel market reflects a similar trend, with the naira dropping from N950/$ on Friday to nearly N1,140/$ by Thursday, according to information from Bureaux De Change operators interviewed. This represents a 20% reduction.
Traders in the market, such as Kadri, have reported rates of N1,100 for selling and N1,140 for buying the dollar.
Another trader, Awolu, confirmed a purchase rate of N1,100 when dealing with news reporters.
The fluctuations in the exchange rate highlight the ongoing challenges faced by the naira in the foreign exchange market.