The Naira’s value witnessed a significant drop in both the parallel market and the NAFEM (Nigerian Autonomous Foreign Exchange Market). Yesterday in Abuja, and various markets, the Naira has fallen to N1,290 against the US dollar.
According to Adamu Suleiman, a Bureau de Change operator in zone 4, Abuja, a dollar was bought for N1,250 and sold for N1,290 as at 5pm. Suleiman attributed this decline to a combination of increase in demand and supply reduction, stating that such fluctuations are typically driven by market dynamics.
Suleiman expressed optimism regarding potential collaborative efforts between the fiscal and monetary authorities. He believes that improved cooperation between these entities, which was absent during the previous administration, may lead to enhanced market efficiency and availability. He cited the existing work relationship among top stakeholders, including the President, as a positive factor that could contribute to stabilising the currency.
According to NAFEM, the Naira depreciated to N847 against the US dollar. This shows a 6.93% drop from the N793 traded just the day before. This marks the second lowest point the Nigerian currency has experienced recently, following a brief slip to N848 earlier this month. The Foreign Exchange (FX) turnover on NAFEM stood at $88 million, accounting for eight percent of the previous day’s activity.
The Naira’s recent decline highlights the challenges facing the Nigerian currency, and underlines the need for effective economic measures to stabilise its value in the global market. The cooperative efforts between the fiscal and monetary authorities are being closely monitored, with hope for positive outcome in the future.