Nigeria Currency Woes: Naira Records Further Depreciation Against Dollar

The Nigerian Naira fell to N1,620 against the US Dollar at the parallel market, marking a N20 decrease from the start of March.

Bureau de Change operators quoted buying at N1,600 and selling at N1,620. The official exchange rate saw the Naira dip to N1,627.40 against the Dollar, a 1.57% fall from the previous day.

The FMDQ Exchange reported fluctuations, with the dollar rate ranging from N1,413 to N1,640. Amidst this, the Central Bank of Nigeria noted increased foreign exchange inflow in February 2024, attributed to higher remittances and foreign investors showing interest in naira assets.

The CBN reported foreign investors purchasing over US$1 billion of Nigerian assets in the last month, bringing total portfolio flows to over US$2.3 billion in 2024.

Despite economic fluctuations, the CBN expects continued FX inflows in March, driven by investor interest in short-term sovereign debt.
This economic situation prompts a closer look at factors affecting the Naira's value and the potential consequences for Nigeria's financial landscape.