Nigerians at the moment will be surprised to know that the Naira crashed against the dollar.
This is not what they were expecting.
You see, a few weeks ago, the Nigerian currency began gaining against the dollar and Nigerians were excited.
According to experts, the earlier rise of the naira was occasioned by the clearance of all valid FX backlog by the Central Bank of Nigeria.
Hoping that the dollar will fall some more, Nigerians began the wait to see the naira exchange at ₦500/$1 or less.
Alas! That expectation may have been cut short. Now, the currency crashed against the dollar in the black market on Wednesday, April 24, 2024.
The naira crashed to ₦1,300/$1 in the parallel foreign exchange market from its rate of ₦1,260, on April 23.
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This crash represents a 3.17% drop in the exchange rate of the naira.
Bureau de Change (BDC) operators, quoted a buying rate of ₦1,260 and a selling price of ₦1,300, thus earning a profit margin of ₦40 per dollar.
Meanwhile, the naira declined to ₦1,308.52 against the dollar in the official market.
According to the FMDQ Exchange, Nigeria’s currency depreciated by 0.64% from the previous rate of ₦1,300.15 traded on April 23.
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This recent depreciation follows a series of interventions by the Central Bank of Nigeria (CBN) to stabilise the currency.
On April 23, the CBN sold FX to BDC operators at a reduced rate.
However, the volatility in FX rates shows the challenges faced by the CBN, in managing the currency’s stability against the dollar amidst varying market dynamics.
