The recent fall of the naira against the US dollar has sparked concerns among Nigerians. Starting on April 22, 2024, the Nigerian currency experienced a noticeable decrease, trading at ₦1234.49 per dollar. The depreciation continued over the following days, with the naira reaching ₦1,308.52 per dollar on April 24 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), indicating a loss of ₦8.37 in a single day.
Within 24 hours, the naira further declined to ₦1,309 per dollar in the official market and ₦1,420 on the parallel market. Traders at the Complex Zone Bureau de Change in Wuse, Abuja, noted that the naira is currently being exchanged between ₦1,400 and ₦1,420 to the dollar.
Despite efforts by the Central Bank of Nigeria to stabilize the exchange rate, the naira’s value continues to deteriorate due to increased demand for dollars on the foreign exchange market. This downward trend challenges the CBN’s attempts to uphold exchange rate stability.
In response to the naira’s fall, many Nigerian citizens are questioning the reasons behind this sudden depreciation, especially after recent gains in the currency’s value. Criticisms have been directed towards the CBN governor, questioning his strategy in defending the naira amid these fluctuations.
Conversely, the CBN governor, Cardoso, has denied claims of using Nigeria’s foreign reserves to defend the naira. In a recent interview, he emphasized that the CBN’s policy does not involve defending the naira.
The uncertainty surrounding the future naira-dollar exchange rate necessitates explanations and measures from the CBN and financial authorities to address the current economic challenges and fluctuations in the foreign exchange markets.
For more information and updates, you can refer to these related articles:
1. Cardoso: What’s Wrong? Nigerians Ask Questions As Naira Depreciates Further – Pulse Nigeria