By Milcah Tanimu
On Friday, the Nigerian naira experienced a continued decline in value, reaching N1,510 to a dollar at the parallel market. The official market also saw a depreciation, closing at N1,466.31 to a dollar, as reported by Daily Trust.
This recent downturn reflects a significant increase of N40 in the dollar to naira exchange rate between Thursday and Friday, with the National Autonomous Foreign Exchange Market (NAFEM) recording the official exchange rate at N1,426 to a dollar.
Despite recent periods of relative strength against the dollar, with the naira even dipping below N1000, this positive trend has since reversed.
The Central Bank of Nigeria (CBN) had implemented several reforms and interventions to stabilize the exchange rate market, including increasing the supply of dollars to Bureau De Change (BDC) operators to enhance liquidity.
However, these efforts have faced challenges, evident in the naira’s declining value. While the official market recorded an exchange rate of N1,466.31 to a dollar, the parallel market saw further depreciation, closing at N1,510. Earlier in the day, it traded at N1,450 before ending the day at N1,510 at the street market, commonly referred to as the black market.
