The Naira dropped N27.58 against the dollar in just two days, reaching N1,592.06 at the official market. In the black market, it fell to N1,615. The Central Bank of Nigeria's recent interventions are under scrutiny as the currency continues to weaken amid inconsistent foreign exchange policies.
The Naira has faced a notable decline against the US dollar, losing N27.58 within just two days, according to FMDQ data. On Tuesday, the exchange rate hit N1,592.06, down from N1,564.48 last Friday. In the black market, the Naira also weakened by N15, trading at N1,615 per dollar compared to N1,600 previously.
This depreciation coincides with the Central Bank of Nigeria's (CBN) Retail Dutch Auction System (rDUS), which commenced in early August to mitigate increased foreign exchange demand. The rDUS has enabled the CBN to sell approximately $876.26 million to end-users through the banking system. However, despite these efforts, the Naira continues to lose value.
Aminu Gwadabe, the President of the Association of Bureau De Change Operators, criticized the CBN for inconsistent foreign exchange policies, indicating that such fluctuations damage confidence in the currency.
In response, CBN spokesperson Sidi Hakama emphasized that the bank’s measures aim to stabilize the foreign exchange market and strengthen the Naira. The ongoing volatility in the currency underscores the broader economic challenges in Nigeria and raises questions about the effectiveness of current monetary policies in maintaining currency stability. As the situation develops, stakeholders are closely monitoring the CBN's actions to restore confidence in the Naira.
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