Despite recent measures by the Central Bank of Nigeria, CBN, to improve the foreign exchange market, the naira concluded trading on Thursday at N996.75/$ on the Investor & Exporter forex window.
This represents a 13.95% decrease from the N874.71/$ it closed trading on Wednesday. According to FMDQ OTC Securities Exchange data, the naira has lost 27.75 percent of its value since beginning the week at N780.23/$.
The naira has been steadily declining in both the official and parallel markets since firming up versus the dollar last week, following news that the apex bank was clearing some of its backlog.
So far, the naira has lost over 40% of its value in 2023, earning the World Bank’s designation as one of the poorest performing African currencies.
The currency has also lost value on the parallel market, going from N950/$ on Friday to close to N1,140/$ on Thursday, according to Bureaux De Change operators. This is a 20% decrease.
Concerned about the currency’s decline, the presidency recently indicated that it is preparing steps to strengthen the local currency.
Dr Tope Fasua, a Special Adviser to the President on Economic Matters who was representing Vice President Kashim Shettima at an event, said:
“For those who are speculating, praying, and wishing that the currency would become nonsense, I believe that the central bank is rolling out policies, and the government that I serve, led by the President, will shock some of them.”