Tougher Days Ahead As Naira Crashes Further Against Dollar

On Wednesday, Nigeria’s currency, the naira, experienced a depreciation against the US dollar, according to official data from FMDQ.

The currency’s value declined to N840.53 against the dollar at the close of business, marking a N9.56 decrease compared to the previous day’s exchange rate of N830.97.

This marks the second occasion in the past week that the official exchange rate has witnessed a depreciation. In a parallel development, at the Parallel Market, the naira exchanged at N1,150/$1 on Wednesday, compared to N1,130/$1 on Tuesday. This sad development portends tougher days ahead for many Nigerians especially those who engage in one form of trade or the other that requires them to buy things in dollar or purchase imported commodities.

However, the country’s foreign exchange turnover demonstrated a notable increase of 61.86 percent, reaching $198.21 million.

The fluctuation in the naira’s value follows the introduction of reforms by the Central Bank of Nigeria (CBN) in June this year. However, the situation is compounded by the absence of a Monetary Policy Committee meeting for the second time in two months, as the CBN governor, Dr. Olayemi Cardoso, failed to convene the scheduled session.