Naira Falls Sharply Against Dollar Amid Rising Inflation

The Nigerian naira saw a significant depreciation against the U.S. dollar on Tuesday, reflecting the ongoing economic pressure driven by rising inflation. According to data from FMDQ, the naira plummeted to N1658.97 per dollar, compared to N1552.92 on Monday, marking a loss of N106.05.

Further analysis showed a sharp decline in the naira’s value, which outpaced the N88.35 gain it had recorded the previous day.

Meanwhile, in the parallel (black) market, the naira held steady at N1700 per dollar, the same rate as Monday.

This development follows the release of inflation data by the National Bureau of Statistics (NBS) on Tuesday, which reported that Nigeria’s inflation rate climbed to 32.70% in September 2024, up from 32.15% in August.

Despite recent interventions by the Central Bank of Nigeria (CBN), the foreign exchange market has remained volatile in recent months. However, CBN Governor Yemi Cardoso, speaking before the House of Representatives Committee on Banking Regulations, reassured that the country’s external reserves are sufficient, standing at $39.12 billion.