The Nigerian Naira has suffered a significant decline in value, depreciating by over 40% in the second quarter of 2024, according to data from the FMDQ.
The Naira weakened to a record low of N1505.30 per dollar on Friday, down from its closing price of N896.6-N907.11 on December 29, 2023.
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Despite a period of appreciation earlier in the year, the Naira has been plagued by instability in recent months, reaching a high of N1,665.50 in February 2024 and a low of N1,140 and N1,230.61 at the official and parallel foreign exchange markets, respectively, in April.
The Central Bank of Nigeria’s (CBN) policies aimed at stabilizing the currency, including the unification of the FX market and interventions in the Bureau De Change market, have failed to stem the tide of depreciation.
The Naira was named the best-performing currency in April but took a drastic turn, becoming the worst-performing currency in May, according to Bloomberg.
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The development comes despite an increase in Nigeria’s external reserves, which stood at $34.07 billion on June 26, 2024.
The Naira’s continued fluctuations against the dollar and other currencies have raised concerns about the effectiveness of the CBN’s policies in stabilizing the foreign exchange market.
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