Naira Continues Freefall, Closing at N881.88/$1 in Official Market.
The Nigerian naira’s depreciation persisted, reaching N881.88 per dollar in the official market and N1157 per dollar in the parallel market. This represents a 7.63% decline, closing at N881.88 per dollar compared to N814.60 the previous day. The intraday high and low were recorded at N1159/$1 and N701/$1, respectively, indicating a wide spread of N458/$1.
At the close of trading, the official Nigerian Foreign Exchange Market (NAFEM) reported a forex turnover of $118.06 million, marking a 17.99% increase from the previous day.
In the parallel forex market, the naira weakened further, depreciating by 0.17%, with an exchange rate quoted at N1157/$1. Peer-to-peer traders quoted around N1160.18/$1.
Financial experts have raised concerns about the naira’s freefall, urging the Central Bank of Nigeria (CBN) to de-dollarize the economy by declaring local transactions in US dollars illegal. Dr. Biodun Adedipe, the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), suggested that the CBN should transparently deal with participating banks, stop government agencies from charging local operators in US dollars, and advocate for the sale of crude oil to local refineries in Naira instead of dollars.
Adedipe emphasized the need for strategic measures, including President Bola Tinubu engaging with bank CEOs to generate ideas and enlist their support for market reforms. He also called for a realistic approach, acknowledging that unified exchange rates might not be the best policy choice for Nigeria’s structurally defective and weak economy.
As the naira faces ongoing challenges, experts stress the importance of comprehensive and transparent measures to stabilize and strengthen the currency.
