Naira Depreciates Against the Dollar in Both Official, Black Market
The naira experienced a depreciation against the dollar on Wednesday, both in the official and black foreign exchange markets.
According to data from Financial Market Dealers Quotation, the naira weakened to N1687.52 per dollar, down from N1,678.93 on Tuesday, reflecting a loss of N8.59. This decline in the official market marks another fluctuation in the currency’s value amid ongoing economic challenges.
In the black market, the naira also saw a drop, falling to N1750 per dollar on Wednesday from N1740 the previous day as this continued weakening of the naira comes despite an increase in foreign exchange (FX) transaction turnover. On Wednesday, FX turnover reached $173.29 million, a rise from $128.59 million on Tuesday, as reported by FMDQ data.
The naira’s persistent fluctuation against the dollar has been a notable trend over the past few months, with the currency showing volatility despite efforts by the Central Bank of Nigeria (CBN) to stabilize the exchange rate. The CBN has been actively intervening in the market to curb the depreciation, but these interventions have so far been unable to fully stabilize the naira.
This ongoing depreciation highlights the pressures facing the Nigerian economy, including challenges related to foreign exchange supply and demand. The fluctuations in the naira’s value have raised concerns about inflation and the broader economic outlook, as businesses and consumers continue to grapple with the effects of the currency’s instability.
