Naira weakens to 1,515/$ despite marginal external reserves growth. Continuing its decline against the US dollar, the Nigerian currency faces challenges amidst market volatility. Analysts anticipate further depreciation without intervention
The Nigerian Naira continues its decline against the US dollar, reaching 1,515 Naira per dollar on the black market, marking a 2.97 percent depreciation compared to Friday's rate of 1,470 Naira per dollar.
This decline persists despite a marginal increase in external reserves to $32.4 billion as of May 8, 2024. Analysts had anticipated further depreciation this week in the absence of Central Bank intervention, as last week witnessed persistent weakness due to a shortage of dollars in the market.
The average turnover at the Nigerian Autonomous Foreign Exchange Market (NAFEM) declined by 31.0 percent week-on-week to close at $894.3 million. The IMF directors have advised adopting a well-designed FX intervention framework to stabilize the currency, emphasizing the importance of removing market distortions.
Despite these challenges, hopes remain for the Nigerian economy's stability amidst ongoing post-election turbulence.
