Naira Plummets by N52.24 Against Dollar Amid FX Supply Crunch

Korede Abdullah in Lagos

The Nigerian Naira has suffered a significant decline, losing N52.24 against the US dollar in just 48 hours.

According to data from FMDQ, the Naira weakened to N1653.02 on Tuesday, down from N1600.78 last Friday. This marks the second depreciation this week, following Monday’s rate of N1603.16 per dollar.

The downturn is attributed to a sharp decline in foreign exchange transactions, with turnover plummeting to $176.15 million from $359.22 million at the start of the week.

The black market rate also reflected this trend, with the Naira trading at N1728 per dollar on Tuesday.

Despite interventions by the Central Bank of Nigeria (CBN), the Naira continues to fluctuate wildly in the foreign exchange market.

This volatility has raised concerns among investors and businesses, underscoring the need for sustained efforts to stabilize the currency.

The CBN has been working to bolster the Naira through various measures, including foreign exchange restrictions and monetary policy adjustments.

However, the currency’s performance remains closely tied to global economic trends and domestic market dynamics, making a lasting recovery challenging.

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