Naira Weakens Against US Dollar Amid Decline in Foreign Exchange Supply

The Nigerian Naira faced depreciation against the US dollar with a 56.58% drop in foreign exchange supply to $117.87 million. Data from FMDQ revealed the Naira’s decline to N1503.38 per US dollar on Wednesday, down from N1,499.07 the day before, marking a 0.26% decrease. At the Parallel Market, the Naira dropped to N1,545 per Dollar on the same day from N1,517. This shift followed a marginal appreciation of the Naira against the dollar in the official FX market on Tuesday.

CBN governor, Olayemi Cardoso, provided assurance of exchange rate stability during an interaction with the Senate Joint Committee on Banking, Insurance and Financial Institutions in Abuja last Friday. The Central Bank of Nigeria’s introduction of the ‘Financial Markets Price Transparency and Market Notice of a Revision to the FMDQ FX Market Rate Pricing Methodology’ and other reforms on January 29th has led to fluctuations in the country’s exchange rate, ranging between N1,400 to over 1,500 per US dollar.