The Nigerian Naira experienced a significant devaluation, dropping by 17.91% to N951.22 against the US dollar in the official Investor and Exporter forex window.
This decrease in value occurred alongside a 4.94% reduction in dollar supply, which fell to $135.58 million.informationguidenigeria
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaThe Naira’s decline comes despite the Central Bank of Nigeria’s efforts to stabilize the currency and amidst a $1.6 billion drop in Nigeria’s foreign exchange reserves.JAMB Result
The currency opened at N828.33/$, reached a high of N1159.10/$ and a low of N701.00/$ before closing at N951.22/$, with a total dollar turnover of $135.58 million on Wednesday.NYSC Portal
In its recent Africa Outlook report, the Economist Intelligence Unit, said, “In Nigeria, an unsupportive monetary policy implies that the naira will remain under pressure, while the central bank lacks the firepower to adequately supply the market or clear a backlog of foreign exchange orders, which will keep foreign investors unnerved.
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“High inflation and a continued spread with the parallel market will leave the exchange rate regime unstable and result in periodic devaluations.”
Recently, the CBN Governor, Olayemi Cardoso, lamented that fiscal deficits and public debt increases had piled pressure on the external reserves and contributed to exchange rate instability.
Speaking at the recent Chartered Institute of Bankers of Nigeria 58th Annual Bankers’ Dinner and Grand Finale of the Institute’s 60th Anniversary, the governor said, “We have already witnessed improvements in FX market liquidity in recent weeks, as the market responded positively to tranche payments which have been made to 31 banks to clear the backlog of FX forward obligations.
“We have been subjecting these payments to detailed verification to ensure only valid transactions are honored. In a properly functioning market, it is reasonable to expect significant FX liquidity, with daily trade potentially exceeding $1.0bn. We envision that, with discipline and focused commitment, foreign exchange reserves can be rebuilt to comparable levels with similar economies.”
