The Nigerian Naira took a sharp nosedive against the US Dollar at the official foreign exchange market on Friday, reflecting a concerning trend in the country’s currency value.
Official data from FMDQ revealed that on Friday, the Naira plummeted to N1099.05 against the US Dollar, a stark contrast from its standing at N843.07/$1 on Thursday. This staggering figure represents a significant N255.98 loss in the local market compared to the previous day’s closure at N843.07/$1.
This disheartening news marks the first time in two months that the country’s currency has been exchanged at a rate surpassing 1,000 in the official exchange market, painting a grim picture of the Naira’s performance.
The situation is exacerbated by the fact that despite the increase in dollar supply to $137.35 on Friday from $135.58 million on Thursday, the Naira continued its downward spiral. The parallel market also mirrored this downturn, with the Naira exchanging at N1180/$1 on Friday, in contrast to N1170/$1 on Thursday.
Dayyabu Mitstila, a Bureau de Change operator in Zone 4, Abuja, verified these figures, affirming that on Friday, the US Dollar was sold at N1180/$1 and bought at N1170/$1.
Amid this foreign exchange crisis, the Central Bank of Nigeria made a significant move by increasing the exchange rate for cargo clearance from N783/$ to N952/$. This decision underscores the severity of the situation and its adverse impact on the currency’s stability.
The Governor of CBN, Dr. Olayemi Cardoso, had exuded confidence and optimism regarding the Naira’s stability during his address at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary event barely two weeks ago. “I’m confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws,” he articulated.
Despite these assurances, the Naira’s rollercoaster ride in the FX market has continued unabated since June 14, following the CBN’s decision to float the country’s currency.
The Naira’s struggle against the US Dollar serves as a stark reminder of the challenges facing Nigeria’s economy and the volatility prevalent in the foreign exchange market. As the country grapples with these fluctuations, it remains to be seen how the authorities will navigate this precarious terrain and steer the Naira toward stability once more.
