On Tuesday, August 30, 2022, the Naira reversed its almost miraculous comeback to trade over the N700/$1 mark once again. This is according to information gathered from several black market forex traders.
The last time the Naira reached the 700/$ range was on July 27, 2022. However, the latest decline in the Naira comes following a 34.3% decline in FX turnover, from $82.38 million, August 26, 2022, to $54.13 million.
The Naira’s depreciation follows reports that the Central Bank of Nigeria has released $265 million to save the Aviation sector; with a portion of it going to pay blocked funds owing to foreign airlines.
The recent drop in the market has been attributed by Bureau De Change operators to a scarcity of FX and an increase in demand. According to BDC operators, the Naria is now trading at N705/$. Similarly, the rate on the cryptocurrency P2P Exchange market has dropped to N701.89/$1.
The crash of the Naira comes despite the central bank’s interest rate hike to 14% in July 2022 and the savings deposit interest rate increase from 1.4% to 4.2% in order to curb rising inflationary pressure as well as encourage FX inflow into the economy.