The foreign exchange market saw the naira fall to a record low of ₦1,681.45 per dollar on Wednesday, despite efforts by the Central Bank of Nigeria to stabilise it.
Strong demand for the dollar has caused the naira to lose over 41 per cent of its value since January, adding to economic pressures.
On Wednesday, the Nigerian naira reached an all-time low of ₦1,681.45 per dollar in the official foreign exchange market, losing 0.6 per cent or ₦10.13 from Tuesday’s rate of ₦1,671.32.
This sharp decline highlights the growing pressure on the currency, driven by strong demand for US dollars among end-users, despite various measures by the Central Bank of Nigeria (CBN) to increase dollar supply.
At the start of the year, the naira was valued at ₦988.46 per dollar. Since then, it has depreciated by 41.2 per cent, reflecting the increasing challenges faced by the Nigerian economy.
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Moreover, turnover in the foreign exchange market also fell, dropping by 10.05 per cent to $196.78 million on Wednesday, down from $218.77 million the previous day.
The exchange rate fluctuated throughout the day, reaching a low of ₦1,620 and a high of ₦1,690 per dollar.
In contrast, in the parallel market, the naira remained steady at ₦1,730 per dollar. Compared to January’s rate of ₦1,490 per dollar, this marks a 13.9 per cent depreciation, or ₦240 per dollar, in the unofficial market.
Despite the CBN’s efforts to stabilise the naira, the currency continues to lose value, underscoring the broader economic challenges facing Nigeria.
