The naira fell, on Thursday, to N956/$ on the official Investor and Exporter forex market, marked by a 46.77% decrease in the supply of dollars.
This represents a 13.78% decrease from the N840.53/$ closure on Wednesday, as reported by data from the FMDQ Securities Exchange. Additionally, the dollar turnover in the market decreased from $198.21 million on Wednesday to $105.50 million.
The day commenced with the naira trading at N800.90/$, reaching highs of N1136/$ and N615/$, only to conclude trading at N956.33/$.
Despite recent efforts by the Central Bank to address the backlog of foreign exchange forward contracts, the naira’s instability persists. The World Bank disclosed that the naira is among the poorest-performing currencies globally, having lost approximately 40% of its value since June.
A recent revelation by the Economic Intelligence Unit, the research and analysis division of the Economist Group, indicates that the CBN lacks the necessary resources to clear the backlog of foreign exchange orders, contributing to ongoing pressure on the naira.
It stated, “In Nigeria, an unsupportive monetary policy implies that the naira will remain under pressure, while the central bank lacks the firepower to adequately supply the market or clear a backlog of foreign exchange orders, which will keep foreign investors unnerved. High inflation and a continued spread with the parallel market will leave the exchange rate regime unstable and result in periodic devaluations.”