Naira Resumes Free Fall Against Dollar

Naira has experienced another downward spiral, reaching an approximate value of N890 per US dollar at the parallel market.

Earlier, the naira had exhibited some signs of improvement after a meeting between President Bola Ahmed Tinubu and the Central Bank of Nigeria (CBN) leadership two weeks ago, aimed at stabilizing the currency’s value.

Following this meeting, the naira managed to appreciate to N820 per dollar in the previous week.

However, this period of stability appears to have been short-lived, as the naira’s value began to decline once again at the start of the current week. Reports suggest that as of August 23, 2023, the currency was trading around N890 to a dollar in Abuja.

A similar trend is being observed in Lagos, where speculative trading has once more begun to influence the currency market.

Bureaux De Change (BDC) operators in the Victoria Island region of Lagos have noted a persistent demand for dollars from both importers and travelers. The buying price for the dollar stands at N885, while the selling price is N905, indicating a profit margin of N20.

Muhammad, a currency trader at the market, highlighted the continued high demand and noted, “The dollar has been going up too.”

At the Exporters’ and Investors’ (I&E) window, the naira’s trading value against the dollar is at N773.42/$1, marking a 0.4% decrease compared to its N770.72/$1 closing rate on the previous Tuesday.

Despite previous efforts, the naira’s stability remains a pressing challenge for Nigeria’s economic landscape.