Naira Sees Depreciation Against US Dollar in Forex Markets

Nigeria’s currency, the Naira, witnessed a depreciation against the US Dollar on Monday in the foreign exchange market.

According to official data from FMDQ, the Naira experienced a marginal decline to N814.60/$1 on Monday, compared to its closing rate of N794.89/$1 on the preceding Friday. This represents a N19.17 depreciation, signaling a 2.48% increase in the official forex market from the Friday closing rate of 793.50.

Despite this shift, the Naira maintained stability at the Parallel Market, holding firm at N1,115/$1 on Monday, consistent with the rate observed on the previous Friday.

Addressing concerns about the fluctuating exchange rate, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), spoke at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary event on Friday. Dr. Cardoso acknowledged the adverse impact of the exchange rate volatility on business growth and pledged the CBN’s commitment to transparency and fairness in fulfilling its functions.

“The removal of the petrol subsidy and the adoption of a floating exchange rate, along with other government policies, are expected to have a positive medium-term effect on the economy,” stated Dr. Cardoso optimistically. He expressed confidence that through corrective actions and strategic steps, macroeconomic stability could be restored, addressing the underlying flaws.

It is noteworthy that Dr. Cardoso failed to convene a Monetary Policy Committee meeting for the second time in two months, and the Nigerian FX market has been grappling with a crisis since the introduction of CBN reforms in June this year.