The Nigerian Naira continued its decline against the US Dollar on Thursday, losing over 10% of its value at the official foreign exchange market. This comes despite recent policies and interventions by the Central Bank of Nigeria (CBN) aimed at stabilizing the currency.
Data shows a decrease in dollar sales by market participants, with daily turnover dropping by 30%. This limited supply, combined with ongoing demand for foreign currency to import goods and services, contributed to the naira’s depreciation.
The local black market also saw a slight weakening of the naira, though to a lesser extent than the official market. This highlights the broader trend of a weakening naira despite the CBN’s efforts.
The future of the naira remains uncertain. The CBN’s ability to address these underlying issues will be crucial in determining whether the currency can stabilize or continue to depreciate.
Source: Business Day