Naira Faces Downward Spiral Against US Dollar Despite Increased Dollar Supply

The Naira experienced a significant depreciation against the US dollar in Wednesday’s forex market session. According to official data released by FMDQ, the Naira opened at N871.12/$1 but closed at N904.56/$1, marking a 4.38% decline by the end of the trading day.

Despite a 22% increase in dollar supply, totaling $120.89 million on Wednesday, the Naira struggled to maintain its position against the greenback. This development raises concerns about the stability of the Nigerian currency in the face of external economic pressures.

The parallel market also witnessed a marginal depreciation of the Naira, with the exchange rate climbing to N1,260/$1 on Wednesday from N1,185/$1 the previous day. This further highlights the challenges the Naira is currently facing in both official and unofficial forex markets.

Last week, the Central Bank of Nigeria took measures to address the foreign exchange crisis by adjusting the exchange rate for cargo clearance from N783/$ to N952/$. Despite such interventions, the Naira’s struggle against the US dollar continues, emphasizing the need for comprehensive measures to stabilize the currency and boost investor confidence.