The Nigerian Naira witnessed a significant depreciation against the US Dollar in the Nigerian Foreign Exchange Market (NAFEM). Data sourced from the Financial Markets Dealers Quotations (FMDQ) revealed that the indicative exchange rate for NAFEM surged to N951.22 per dollar, marking a stark increase from N806.73 per dollar recorded on Tuesday.
This represents an 18 percent depreciation, amounting to N144.49 for the Naira.
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The sharp decline in the value of the Naira has raised eyebrows among financial experts and market observers, pointing to potential economic challenges. The data signals a strain on the country’s foreign exchange reserves and may impact various sectors of the economy.
In parallel, the black market exchange rate also experienced a notable shift. The Dollar to Naira Black Market rate recorded a decline from ₦1165 per dollar to ₦1173 per dollar. This further compounds the challenges faced by individuals and businesses relying on foreign exchange transactions.
Naira to dollar gains massively at forex market
Economic analysts are closely monitoring these developments, anticipating potential impacts on inflation, consumer prices, and overall economic stability. The Central Bank of Nigeria (CBN) and relevant authorities are expected to respond with measures aimed at stabilizing the currency and mitigating further depreciation.
The depreciating value of the Naira underscores the need for strategic economic policies and measures to address underlying issues affecting the nation’s currency. As the situation unfolds, market participants and the public at large remain watchful for updates from financial regulators and policymakers.
Sources:
- FMDQ
- Bureau De Change operators
- Central Bank of Nigeria
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