Nigerians are increasingly worried as the dollar reached N1,533.99 in the official market, creating uncertainty about the country’s economic stability. This surge in the dollar rate brings back memories of the over N1,600/$1 mark seen in March 2024. The naira had shown some recovery in April, but it has depreciated again. The FMDQ Securities Exchange Limited reported a 4.89 percent depreciation in the naira, with the dollar quoted at N1,533.99 on Thursday, up from N1,459.02 on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The naira’s depreciation is attributed to a shortage of the US currency, with the dollar supplied by willing sellers and buyers declining by 5.63 percent to $272.86 million on Thursday from $289.14 million on Wednesday. During intraday trading, the dollar was quoted at N1,590, slightly stronger than the previous day’s N1,593. The intraday low was N1,399.20, marginally better than N1,401/$1 on Wednesday. In the parallel market, the naira fell to N1,535 on Thursday, down from N1,520 the previous day, and in some street trading areas, the dollar was quoted at N1,545.
In response to these currency challenges, the Central Bank of Nigeria (CBN) has approved in principle 14 new international money transfer operators (IMTOs) to enhance cross-border fund transfers and bolster foreign currency remittance flows. This move aims to promote financial inclusion and improve the efficiency of remittance transactions in the country.
Source: Business Day