On Thursday, the Nigerian naira experienced another setback, hitting a new low against the dollar on the official market, as per data from FMDQ Exchange. Despite efforts by the central bank to infuse dollars into the market, the naira’s value continued to decline, even dropping below rates seen in street trading.
At its lowest point, the naira traded at 1,851 to the dollar before rebounding slightly to close at around 1,571 to the dollar, according to FMDQ data.
The persistent decline in the naira’s value underscores ongoing challenges in Nigeria’s economy, particularly concerning foreign currency shortages. Despite the central bank’s attempts to stabilize the currency through interventions, both the official and parallel markets have seen repeated lows.
Reports indicate that the central bank sold $100 million this week alone as part of its intervention efforts, bringing the total intervention since last week to $300 million.
Looking ahead, the central bank is preparing for its first interest rate meeting under Governor Olayemi Cardoso. Cardoso has emphasized his commitment to supporting the naira and addressing inflation, which is currently at its highest level since the mid-1990s.
In summary, Nigeria continues to grapple with currency challenges amid persistent foreign currency shortages, despite intervention efforts by the central bank. All eyes are on upcoming policy decisions as the government seeks solutions to stabilize the economy.
