The naira’s value has dropped to ₦1,705 per dollar in the parallel market, reflecting a continued decline due to high demand for U.S. dollars and limited foreign exchange inflows. This latest depreciation highlights the naira's vulnerability amidst Nigeria’s foreign exchange challenges.
The naira experienced further depreciation in the parallel market on Wednesday, trading at ₦1,705 per dollar. Bureau de Change operators in Lagos and Abuja reported slightly different rates, with sales at ₦1,705 in Lagos and ₦1,700 in Abuja, while buying rates hovered around ₦1,695 and ₦1,690.
The Nigerian Autonomous Forex Exchange Market, meanwhile, showed the official exchange rate at ₦1,659.69 per dollar, down marginally from the previous day. The official market recorded a high rate of ₦1,682 and a low of ₦1,562.97 per dollar, with a daily turnover of $177.10 million, a drop from $217.86 million on Tuesday.
This downward trend in the naira’s value highlights significant demand pressures for the U.S. dollar amid limited foreign exchange inflows and slow disbursements from the Central Bank of Nigeria.
The World Bank recently ranked the naira among the poorest-performing currencies in Sub-Saharan Africa for 2024, with the currency down by around 43% so far this year. The Ethiopian birr and the South Sudanese pound also face similar issues.
