The Nigerian Naira has taken a hit in the parallel market, falling to N1,515 per dollar after previously standing at N1,495, a decline that has raised concerns about the country’s economic stability.
In a similar downturn, the official Nigerian Autonomous Foreign Exchange Market (NAFEM) witnessed the Naira dropping to an exchange rate of N1,485.66 per dollar. This fall in value marked a significant depreciation from the previous rate of N1,462.59, resulting in a 23.07 naira tumble.
NAFEM’s data, as reflected by the rates on the FMDQ platform, showed intraday fluctuations reaching a high of N1,510 and a low of N1,401 per dollar, equating to a disparity of N109.
This weakening of Nigeria’s currency comes amidst reported increased dollar transactions, with trading volume experiencing a 35.7% boost, climbing to a total of $167.55 million from the former tally of $123.45 million.
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This negative shift in the naira’s fortune has, in turn, led to a narrower margin between the quoted rates in the parallel market and NAFEM rates, notably contracting from N33.59 to N29.34 per dollar.
Amid this currency predicament, noted business figure Chief Atedo Peterside, renowned for founding Stanbic IBTC and ANAP Foundation, commented on the pressing situation.
He warned against a hasty drive by President Bola Tinubu’s administration to strengthen the naira against the dollar and other rival currencies. Peterside suggested a steadier, more methodical method to stabilize and then gradually reinforce the currency.
Peterside’s view, shared in a televised discussion, advocates for maintaining stability at a sustainable level, then systematically bolstering the reserve to foster lasting confidence.
As a result of recent developments, the naira achieved unexpected recognition as the world’s best-performing currency due to a rebound from an initial fall, recovering from an all-time low of 1,900 to a dollar to approximately 1,100.
SOURCE: Africa Today News, New York
