In a single day at the foreign exchange market, the naira experienced a staggering N81.34 depreciation against the US dollar.
According to FMDQ data, the naira plummeted to N1,154.08 per dollar on Thursday, marking a significant decline from N1,072.74 on Wednesday. This abrupt shift represents a 7.04 per cent loss against the dollar compared to the previous day’s rate.
Likewise, at the parallel market, the naira saw a depreciation, dropping from N1,040 on Wednesday to N1,100 per dollar on Thursday.
This rapid decline emphasizes growing concerns about the stability of the currency amidst fears of depleting foreign exchange reserves.
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This marks the second instance of the naira depreciating against the dollar in just three days, heightening worries among investors and market participants.
The volatility in the currency market reflects broader economic uncertainties and challenges facing the Nigerian economy.
In a bid to address these concerns, Governor Olayemi Cardoso of the Central Bank of Nigeria stated on Wednesday, highlighting a recent $600 million inflow into the country’s foreign reserves.
Despite this injection, Nigeria’s FX reserves had dropped to $32.29 billion as of April 15, indicating ongoing pressures on the currency.
However, Cardoso expressed confidence that as long as liquidity remains in the country’s FX market, the naira’s recent losses can be mitigated and sustained.
The statement aims to reassure stakeholders and restore confidence in the currency amid the current economic landscape characterized by fluctuating exchange rates and dwindling reserves.