The Nigerian Naira depreciates to a two-month low against the US dollar, hitting N1,520.40 at the official foreign exchange market. With a shortage of dollars affecting the market, the currency faces challenges, reflecting economic complexities. Analysts attribute the downturn to various factors, including regulatory arbitrage and repatriation of funds by foreign investors.
The Nigerian naira has plummeted to a two-month low of N1,520.40 against the US dollar at the official foreign exchange market, marking a 2.78 percent depreciation compared to the previous day.
This decline, reported by FMDQ Securities Exchange Limited, follows a shortage of dollars in the market and a significant reduction in dollars supplied. The intraday high and low also saw decreases, reflecting ongoing volatility.
Furthermore, the naira reached a new low of 1,530 against the dollar on the parallel market. Analysts attribute this downturn to the repatriation of funds by foreign portfolio investors and regulatory arbitrage, complicating efforts to stabilize the currency.
Bismarck Rewane, CEO of Financial Derivatives Company Limited, highlighted the naira's tumultuous history and its susceptibility to economic, political, and policy influences during his recent presentation at the Lagos Business School.
![Today's Naira Rate [31-05-2024]: Naira Steadies at N1,490/$ in Parallel Market, Slips Further to N1,486/$ at Official Window](/data/attachments/204/204507-bd899ca0c24b3b3c73ca8044710ce26b.jpg)
