Naira Records Depreciation Against US Dollar at N904/$ - The Top Society

Naira Records Depreciation Against US Dollar at N904/$

TOPSOCIETYNG
Naira recently witnessed a notable depreciation against the US dollar on Wednesday, according to official data from the Financial Markets Dealers Quotations (FMDQ). The official exchange rate closed at N904.56/$1 at the end of the business day, marking a significant drop from the opening rate of N871.12/$1.
The figures reveal a 4.38 per cent depreciation, underscoring the challenges faced by the local currency in the official foreign exchange market. Despite a 22 per cent increase in dollar supply to $120.89 million on Wednesday, the Naira struggled to maintain its value.
Depreciation
Simultaneously, the Naira experienced a marginal depreciation in the parallel market, where it exchanged at N1,260/$1 on Wednesday, compared to N1,185/$1 the previous day.
This trend raises concerns about the resilience of the Naira amid efforts to stabilize the foreign exchange market. The recent adjustment by the Central Bank of Nigeria, which increased the exchange rate for cargo clearance from N783/$ to N952/$, had been a response to the ongoing foreign exchange crisis.
As economic stakeholders closely monitor these developments, the challenges facing the Naira continue to highlight the need for strategic interventions to maintain stability in the currency’s value against global currencies.
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