The value of the Nigerian naira dropped against the United States dollar, reaching N1,234 at the official foreign exchange market on Monday, marking a decrease of N65 or 5.26% from Friday’s rate of N1,169.99/$1. This decline comes after the naira had briefly strengthened, with traders anticipating it could trade below N1,000/$1.

The recent depreciation coincides with remarks from the Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, who clarified that the bank’s goal wasn’t to defend the naira, despite concerns over a decline in external reserves. Nigeria’s foreign exchange reserves have experienced a continuous one-month decline, reaching $32.1 billion on April 18, 2024, down by $2.35 billion in 31 days.

Addressing concerns, the CBN governor emphasized that the slight decrease in reserves wasn’t linked to defending the naira, indicating a shift in the bank’s intervention policy unless unusual circumstances arise.

Source: Punch