The official Investor and Exporter forex window witnessed a sharp 17.91% decline in the naira, reaching N951.22/$ on Wednesday.
Simultaneously, the dollar supply fell by 4.94% to $135.58m from $142.63m. FMDQ Securities Exchange data unveiled a significant N144.49 loss against the dollar, with the previous closing rate at N806.73/$.
The day began with the naira opening at N828.33/$, followed by fluctuations that saw a high of N1159.10/$ and a low of N701.00/$, eventually closing at N951.22/$.
The total dollar turnover for the day amounted to $135.58m. Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the national currency, the naira continues to experience volatility in the market.
This decline comes on the heels of Nigeria’s foreign exchange reserves decreasing by $1.6bn to $32.97bn during the CBN’s attempts to unify the country’s exchange rates, putting additional pressure on the naira.
The Economist Intelligence Unit forecasts ongoing challenges for the naira, citing unsupportive monetary policies, resulting in periodic devaluations and heightened concerns among foreign investors.
CBN Governor Olayemi Cardoso acknowledged the impact of fiscal deficits and rising public debt on external reserves, contributing to exchange rate instability. Speaking at the Chartered Institute of Bankers of Nigeria event, he highlighted improvements in FX market liquidity but emphasized the need for discipline and focused commitment to rebuild foreign exchange reserves.
