In a concerning economic twist, the Nigerian Naira stumbled to N1,089.51 against the US dollar at the official foreign exchange market on Tuesday. This marked a significant drop from the N856.57 quoted at the close of business the day before, revealing a staggering N220.38 depreciation in the local currency within a day, as per data from FMDQ.
The latest downturn follows three days of consecutive gains at the onset of the new year, further exacerbating the unpredictability of the country’s currency. Notably, the parallel market also witnessed a decline, with the Naira sliding to N1,245 per US dollar from N1,240 on the previous trading day.
This disheartening trend persists despite the Nigerian federal government securing a substantial $2.25 billion foreign exchange support loan from the African Import-Export Bank just over a week ago, raising questions about the root causes of the currency’s vulnerability and the efficacy of recent economic interventions.
