Amidst the ongoing economic turbulence in Nigeria, the value of the national currency, the naira, has continued its downward trajectory across both official and unofficial foreign exchange markets. Speculators are capitalizing on the situation, leading to a surge in demand for the US dollar.
On the parallel market, commonly referred to as the black market, the naira opened trading on Friday at N1,430 per dollar, marking a 2.09 percent depreciation from the previous day's rate of N1,400. Meanwhile, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official FX market, the naira remained relatively flat, with the dollar quoted at N1,309.88.
Dollar supply increased significantly by 61.02 percent to $318.08 million on Thursday, indicating heightened trading activity. Despite efforts to address volatility, including measures implemented by the Central Bank of Nigeria (CBN), challenges persist, with inflation and FX instability remaining key concerns.
Olayemi Cardoso, CBN governor, acknowledged these hurdles while highlighting recent achievements in achieving relative stability in the FX market. Cardoso emphasized the importance of strategic planning to address economic challenges and foster financial inclusion. While the naira's recent performance garnered global recognition, the path ahead remains uncertain, with inflationary pressures and FX volatility posing persistent threats to economic stability.
