By Sunmola Jemilat Oluwabunmi (SIWES student, AAPOLY)
The Naira faced a decline against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), settling at N854.61/$ on Monday, compared to the previous close of N844.85/$. In contrast, at the parallel market, it strengthened to N1,228/$ from N1,238 on Tuesday, December 19, 2023.
Against the Great Britain Pounds (GBP), the Naira appreciated, closing at N1,560/£ on Wednesday, up from N1,570/£ the previous day. The value of the Naira to the dollar also saw a 1.3% increase at NAFEM, reaching 889.86/$ last week.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso predicts a stable foreign exchange market in 2024, anticipating reduced exchange rate pressures based on positive economic outlook.
Bismarck Rewane, CEO of Financial Derivatives, supports this view, expecting the Naira’s appreciation as inflation drops in 2024.
In response to Naira’s depreciation, the House of Representatives proposes adopting the Chinese Yuan (CNY) as an official foreign exchange reserve currency, alongside other major international currencies, aiming to mitigate economic instability and uncertainty.
