Naira Hits New Low: Plunges to ₦1,537/$ at Parallel Market

The Nigerian naira experienced a significant depreciation, closing at ₦1,537.96 at the official market on Friday. This marks a continuation of the currency’s struggle, with the most recent dip breaching the ₦1,500 threshold.

Throughout the week, the exchange rate fluctuated between ₦1,500 and ₦1,515 to the US Dollar. A temporary recovery was observed on Thursday, closing at 1,499 at the Nigeria Autonomous Foreign Exchange Market (NAFEM). However, the naira closed the week at ₦1,537, despite the Central Bank of Nigeria (CBN) issuing directives aimed at stabilizing the forex market.

The CBN, in a series of circulars dated February 14, implemented measures such as setting limits on foreign currency transfers from crude export proceeds by international oil companies. Banks are now restricted to transferring a maximum of 50% of crude export proceeds to oil companies abroad. Additionally, the CBN halted the payment of cash for basic travel allowance (BTA) and Personal Travel Allowance (PTA).

Despite these efforts, the naira remains resilient in its decline, losing ₦40 in value against the US Dollar. The British pound also experienced an unfavorable exchange rate, reaching ₦1912.4400 at the official market. The situation raises concerns about the stability of Nigeria’s currency and the effectiveness of the recent measures implemented by the central bank.