The Nigerian naira has continued its downward trajectory, trading above the ₦1,600 mark against the U.S. dollar at both official and parallel foreign exchange markets.
This marks a significant depreciation, raising concerns about the country’s economic stability.
Key Details:
- Official Market: The naira closed at ₦1,606/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM), reflecting a 0.86% decline from the previous day’s rate of ₦1,594.27/$12.
- Parallel Market: In the black market, the naira remained stable at ₦1,615/$1, widening the gap between official and parallel rates3.
- Other Currencies: The naira also weakened against the British pound and euro, trading at ₦2,116.69/£1 and ₦1,782.62/€1, respectively.
- Economic Factors: The depreciation is attributed to high seasonal demand for foreign exchange, coupled with challenges in supply. Despite interventions by the Central Bank of Nigeria (CBN), the naira’s value continues to face pressure.