The Nigerian currency, the naira, experienced a significant drop in value against the US dollar in just one day, according to data from FMDQ. The naira plummeted to N1,154.08 per dollar on Thursday from N1,072.74 on Wednesday, marking a 7.04% decrease in value compared to the previous day.
In the parallel market, the naira also depreciated, falling to N1,100 per dollar on Thursday from N1,040 on Wednesday. This is the second time in three days that the naira has weakened against the dollar, sparking concerns about dwindling foreign exchange reserves.
Governor Olayemi Cardoso of the Central Bank of Nigeria reassured the public in a statement on Wednesday that the country recently received a $600 million inflow into its foreign reserves. Despite this, Nigeria’s FX reserves had dropped to $32.29 billion as of April 15.
Cardoso emphasized that as long as there is liquidity in the country’s FX market, the naira’s value can be stabilized. The fluctuating exchange rate highlights the importance of monitoring foreign exchange reserves and maintaining a stable economy.
