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The Nigerian Naira has experienced a significant downturn against the US Dollar in the foreign exchange market, with seven consecutive days of depreciation recorded.
According to FMDQ data, the Naira traded at N1309.88 per Dollar on Thursday, a decline from the previous day’s rate of N1308.52.
This represents a loss of N1.36 in a single day.
In the parallel market, the Naira’s value dropped to a range of N1,300 to N1,370 from the previous day’s range of N1,250 to N1,300.
Over the last four days, the Naira has consistently weakened against the Dollar in the foreign exchange market.
Just last week, the currency experienced three consecutive days of depreciation. Since April 17, 2024, the Naira has lost a substantial amount, trading at N1,072.74 per Dollar on that date.
Despite the Central Bank of Nigeria (CBN) intervening in the market by releasing $10,000 each to BDC operators at a rate of N1,021 to a dollar with a directive to sell at most 1.5 percent above the purchase price, the efforts have not been enough to stem the tide of depreciation.
This is the third recent intervention by the CBN in a bid to stabilize the Naira.
BDC operators have pointed fingers at peer-to-peer cryptocurrency platforms like Binance for the recent depreciation of the Naira against the dollar in the foreign exchange market.
The continuous weakening of the Naira against the Dollar has raised concerns about the effectiveness of the CBN’s interventions and the overall economic stability of Nigeria.
The situation also highlights the growing influence of cryptocurrency platforms on traditional financial markets.
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