Nigeria Naira's Downward Spiral: Despite CBN Intervention, Dollar Reigns Supreme in Forex Market

Despite recent efforts by the Central Bank of Nigeria (CBN) to bolster the Naira's value through additional forex injections, the currency continues to struggle against the US Dollar.

FMDQ data reveals a further depreciation of the Naira to N1308.52 per Dollar on Wednesday, down from N1,300.15 the previous day in the official market. In the parallel market, the Naira traded between N1,250 and N1,300, compared to N1230 on Tuesday.

Despite the CBN's release of $10,000 to Bureau De Change (BDC) operators at a subsidized rate of N1,021 per dollar, with a mandate to sell within a specified margin, the Naira's decline persists. This marks the third recent intervention by the CBN aimed at stabilizing the Naira.

Aminu Gwadabe, the National President of the Association of Bureau De Change Operators of Nigeria, attributed the Naira's depreciation to peer-to-peer cryptocurrency platforms like Binance. The ongoing depreciation underscores the challenges facing Nigeria's currency amid fluctuations in the forex market, despite regulatory interventions.