Naira Slumps Seven Times Against Dollar in Days at Foreign Market

The Nigerian Naira has seen a significant decline, slumping seven times in recent days against the US dollar in the foreign exchange market. According to data from the Financial Markets Dealers Quotations (FMDQ), the Naira dropped to N1309.88 per dollar on Thursday, down from N1308.52 on Wednesday, indicating a day-to-day loss of N1.36.

In the parallel market, the Naira experienced a more drastic slide, with rates fluctuating between N1,300 and N1,370 on Thursday, compared to the range of N1,250 to N1,300 from the previous day. This continued depreciation has caused concern among traders and businesses.

Over the last four days, the Naira’s decline against the dollar in the foreign exchange market has become increasingly pronounced. The past week alone saw the Naira depreciate three times against the dollar.

Since April 17, 2024, when it traded at N1,072.74 per dollar, the Naira has lost N237.14, a notable reduction within a relatively short period. Despite interventions by the Central Bank of Nigeria (CBN), including the release of 10,000 dollars to Bureau De Change (BDC) operators at a rate of N1,021 to a dollar with a ceiling of 1.5 percent above the bought price, the currency continues to struggle.

This latest intervention for BDCs is the third in recent weeks, as the CBN attempts to stabilize the Naira. However, BDC operators have attributed the ongoing depreciation to the influence of peer-to-peer cryptocurrency platforms like Binance, which they believe are contributing to the currency’s downward trajectory in the foreign exchange market. The persistent decline in the Naira’s value has sparked broader concerns about the stability of Nigeria’s economy and the effectiveness of the CBN’s measures to curb the currency’s slump.