The naira depreciated further, trading at N1,570/$1 in the parallel market amid rising forex demand and limited supply. It also weakened against the pound and euro. Despite CBN’s interventions, analysts warn of continued depreciation unless forex liquidity improves. Governor Cardoso vows strict penalties for forex code violations.
The Nigerian naira continued its downward trend midweek, falling to N1,570 per dollar in the parallel market, reflecting persistent foreign exchange challenges. This marks a further decline from N1,565/$1 on Tuesday and N1,560/$1 on Monday, signaling sustained volatility in the forex market.
A Bureau De Change (BDC) operator in Abuja attributed the depreciation to increased demand for the US dollar and limited supply, making it harder for businesses and individuals to access forex at stable rates.
In the official market, the naira also weakened, closing at N1,513.10/$1 on Tuesday, compared to N1,502.00/$1 on Monday. Buying and selling rates hovered around N1,498.78/$1 and N1,499.78/$1, respectively, showing consistent pressure on the exchange rate.
Beyond the dollar, the naira also depreciated against the British pound and the euro, with the pound hitting N1,975 and the euro trading at N1,600 in the parallel market.
Market analysts predict further depreciation unless there is a significant intervention from the Central Bank of Nigeria (CBN) or an improvement in forex liquidity. Despite efforts such as tightening regulations for Bureau De Change operators and boosting dollar supply, forex pressures persist.
CBN Governor Olayemi Cardoso reiterated the bank’s commitment to maintaining transparency in forex transactions, warning of strict penalties for violations of the recently introduced Nigeria Foreign Exchange (FX) Code.
Businesses and individuals reliant on foreign transactions remain uncertain about the naira’s future as market fluctuations continue.
