Naira Tumbles Against Dollar on Foreign Exchange Market

In a reversal of fortunes, the Nigerian naira fell against the dollar on Wednesday, just 24 hours after showing signs of appreciation. According to data from FMDQ, the naira depreciated by N12.29 to N1606.56 per dollar, compared to N1594.27 on Tuesday.

The decline came despite foreign exchange transaction turnover increasing to $160.94 million on Wednesday, up from $156.94 million the previous day. At the black market, however, the naira remained steady at N1620 per dollar, maintaining the same rate as Tuesday.

Despite efforts by the Central Bank of Nigeria to stabilize the foreign exchange market, including the introduction of the Retail Dutch Auction System, the naira continues to fluctuate against the dollar and other foreign currencies. Media Talk Africa reports that the ongoing volatility may be a cause for concern for investors and economists alike.

As the market continues to grapple with the uncertainties of the Nigerian economy, it remains to be seen what the future holds for the value of the naira. One thing is certain, however: the recent trend suggests that the naira is a currency that is subject to significant market forces.