The naira further depreciated against the dollar on Monday as challenges in Nigeria’s foreign exchange market persist.
According to data from the FMDQ, the naira weakened by N2.11 to close at N1,611.40 per dollar, down from N1,609.29 on Friday.
The parallel market also mirrored this trend, with the naira falling by N5 to N1,600 per dollar, compared to N1,595 traded last week.
Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency through dollar sales, the naira continues to face downward pressure.
Last week, the CBN sold $148 million to 29 authorized FX dealers. Over the past two weeks, the bank has injected a total of $254.5 million into the market to legitimate FX dealers in an attempt to curb the naira’s slide.
However, these interventions have not been sufficient to stem the currency’s decline, raising questions about the effectiveness of the current forex management strategy.
The continuous fall of the naira has implications for inflation, cost of living, and the overall economic health of the country.
Market analysts suggest that structural issues, including a high demand for dollars amidst limited supply, are contributing to the naira’s depreciation.
The gap between the official and black market rates indicates significant market distortions, further complicating efforts to achieve exchange rate stability.
