The Naira experienced a significant depreciation against the US dollar at the end of last week, with the foreign exchange (FX) supply turnover plummeting by 74% to $84.10 million despite the Central Bank of Nigeria’s (CBN) interventions.
According to data from FMDQ, the Naira depreciated to N1,537.96 per US dollar on Friday from N1,498.25 on Thursday, marking a 2.6% loss. Similarly, at the Parallel Market, the Naira dropped to N1,590 per US dollar on Friday from N1,575.00 on Thursday.
Over the past week, the Forex market has witnessed continued fluctuations. On Monday, the Naira traded at N1,534.39 per US dollar at the official FX market; on Tuesday, it traded at N1,499.07; N1,503.38 on Wednesday, and N1,498.25 on Thursday.
The currency’s depreciation at both FX markets occurred following the CBN’s implementation of new guidelines on Wednesday, including the discontinuation of cash payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Furthermore, the apex bank barred International Oil Companies (IOCs) operating in Nigeria from repatriating 100% of their forex revenue.
