Politics
Nigerian Naira Falls To N956/$ With A 46% Decrease In Dollar Supply (Details)
On Thursday, the Nigerian naira experienced a decline, reaching N956/$ on the official Investor and Exporter forex window due to a 46.77 per cent decrease in dollar supply. This marks a 13.78 per cent drop from Wednesday’s closing rate of N840.53/$, as reported by data from the FMDQ Securities Exchange. The volume of dollars traded also decreased from $198.21m on Wednesday to $105.50m…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

Trading commenced at N800.90/$ for the day, with the naira fluctuating between N1136/$ and N615/$ before ultimately concluding at N956.33/$. Despite recent efforts by the Central Bank to address the backlog of foreign exchange forward contracts, the naira remains volatile. The World Bank has revealed that the naira is among the worst-performing currencies globally, having depreciated by approximately 40 per cent since June.
The Economic Intelligence Unit, the research and analysis division of the Economist Group, has indicated that the Central Bank lacks the necessary capacity to resolve the backlog of foreign exchange orders. This ongoing challenge is expected to exert continued pressure on the naira. The unit highlighted, “An unsupportive monetary policy in Nigeria implies that the naira will remain under pressure, with the central bank lacking the firepower to adequately supply the market or clear a backlog of foreign exchange orders. This situation will likely unsettle foreign investors, leading to an unstable exchange rate regime and periodic devaluations, exacerbated by high inflation and disparities with the parallel market.”
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