By Lawal Amina Abiodun(SIWES student, D S Adegbenro ICT Polytechnic)
Speculators are responding to the sharp decline of the Nigerian naira, which reached an average rate of 1,030 naira per dollar in the informal market on Monday.
This marks an 8.42% decrease, equivalent to an 80-naira loss compared to the previous week’s closing rate of 950 naira per dollar.
Notably, this is the first instance of the naira depreciating since the Central Bank of Nigeria initiated measures to address its foreign exchange backlog. Currency traders, also known as Bureaux De Change operators, have observed naira trading within the range of 990 to 1,030 naira per dollar.
The depreciation of the naira is primarily attributed to the resistance against the dollar’s decline following recent actions taken by the Central Bank of Nigeria.
Furthermore, the official market saw a 3.6% depreciation in the naira, closing at 809.02 naira per dollar on Monday, in contrast to the 780.23 naira per dollar on the preceding Friday, as reported by the FMDQ OTC Securities Exchange.
