The Nigerian Naira has continued its decline against the US dollar in the foreign exchange market. According to data from FMDQ, the Naira’s value dropped to N925.34 on Monday, a significant decrease from N902.45 per US dollar on Friday.
This latest depreciation marks a 2.54% decrease, with the Naira closing at N925.34 compared to its previous value of N902.45 per US dollar. In addition, the parallel forex market also saw a decline, quoting the exchange rate at N1,360 per dollar, reflecting a 0.74% depreciation.
The Association of Bureau De Change Operators of Nigeria has attributed the Naira’s freefall to dollar hoarders, expressing concerns about the impact on the country’s economy. As a response to the ongoing volatility, Olayemi Cardoso, the Central Bank of Nigeria governor, is set to preside over his first Monetary Policy Committee meeting since assuming office on February 26 and February 27, 2024.
The continuous weakening of the Naira against the US dollar raises apprehensions about its potential consequences on Nigeria’s economic stability, trade, and investment. All eyes are on the outcomes of the upcoming Monetary Policy Committee meeting as stakeholders eagerly await measures to address the currency challenges and stabilize the forex market.
