The Naira has experienced a significant depreciation against the dollar in the foreign exchange market over a two-day period, according to data from FMDQ.
The Naira depreciated by N27.58 against the dollar between Monday and Tuesday. This decline saw the Naira exchange rate reach N1,592.06 per dollar on Tuesday, compared to N1,564.48 the previous week on Friday.
Similarly, at the parallel market or black market, the Naira also lost value, dropping by N15 on Tuesday to exchange at N1,615 per dollar, compared to N1,600 on the previous Friday. This downward trend in the value of the Naira has been attributed to the Central Bank of Nigeria’s Retail Dutch Auction System, which was implemented in response to increased FX demand.
Although the CBN conducted FX auctions amounting to $876.26 million through banks, the Naira has continued to lose ground despite these interventions. Aminu Gwadabe, the President of the Association of Bureau De Change Operators, criticized the CBN for what he described as inconsistency in its FX interventions.
In response to concerns about the Naira’s depreciation, the CBN reaffirmed its commitment to implementing policies and interventions aimed at ensuring stability in the foreign exchange market.
The CBN emphasized that its actions are geared towards maintaining FX stability and safeguarding the country’s economic interests.
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