By Bolaji Peters (SIWES student, Polytechnic Iresi)
The Nigerian naira experienced a marginal uptick against the US dollar, edging from its record low of N1,534/$ to N1,499/$ on Tuesday.
However, its performance remained feeble in the parallel market, where it lingered at N1470/$.
This fluctuation is attributed to President Bola Tinubu’s decision to eliminate fuel subsidies and unify the exchange rate market, precipitating the naira’s depreciation since May 2023.
Despite the slight official market improvement, the naira plummeted to an unprecedented low of N1,534/$ against the US dollar on Monday.
This downward trajectory follows its recent decline from N1,099.05/$ on December 8 to the current rate.
Simultaneously, the naira witnessed some reinforcement, trading at N1,530 in the parallel market.
Currency traders, such as Bureau De Change operators in Abuja, reported varying rates during intra-day trading, with the dollar opening at N1,509/$ and closing at N1,515/$.
Ibrahim Taura, a BDC operator, highlighted the persistent uptick in demand for the greenback despite the elevated exchange rates.
Similarly, Nuhu Zakari at the Abuja airport noted purchasing the dollar at N1,525.
Bank sales of dollars notably decreased by 54.2%, dropping from $253.77 million on Friday to $116.11 million on Monday, according to data from the FMDG.
