Nigeria Naira Plummets by 11.40% to N927.19/$ at Official Exchange Market Despite CBN's Stabilization Efforts

The Nigerian Naira experienced a significant 11.40% depreciation, landing at N927.19 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official exchange rate window.

This marks a notable drop from the previous day's rate of N832.32. FMDQ Securities Exchange data revealed that the local currency fluctuated between an intra-day high of N1,160 and a low of N701.

The day's transactions at the official window amounted to a substantial $110.14 million, with rates opening at N815 and closing at N927.19. Meanwhile, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso affirmed the bank's commitment to stabilizing the naira and curbing inflation.

Despite ongoing efforts, challenges persist, as Cardoso acknowledges a historical dislocation in monetary transmission mechanisms, with recent measures showing signs of improvement by reducing excess liquidity in the banking system. This economic saga unfolds against the backdrop of broader financial uncertainties and raises questions about the effectiveness of monetary policies in the current landscape.