The fluctuations in Nigeria’s FX market have persisted despite efforts by CBN in the past months.
The Nigerian naira continued its downward slide for the second consecutive day, closing at N1,606.64 per dollar in the official market on Tuesday, down from N1,605.62 on Monday. This represents a marginal depreciation of N1.02, according to Central Bank of Nigeria (CBN) data. The parallel market remained stagnant at N1,610/$, maintaining Monday’s rate despite ongoing volatility in the foreign exchange market.
Over the past 48 hours, the naira has weakened by N4.44 and N5 in the official and black markets, respectively. The persistent depreciation comes despite the CBN’s recent interventions, including monetary policy tightening and foreign exchange market reforms aimed at stabilizing the currency.
Analysts attribute the naira’s continued slump to dollar scarcity, heightened demand, and speculative activities. The CBN faces mounting pressure to curb the slide as inflation hits 33.69%, eroding purchasing power. Market watchers expect further volatility unless dollar inflows improve significantly.