On Thursday, November 9, the Nigerian Naira closed trading on the Investor & Exporter (I&E) forex window at N996.75/$, reflecting a 13.95% decline from its previous closing rate of N874.71/$ on November 8. This comes despite the Central Bank of Nigeria’s (CBN) ongoing efforts to bolster the foreign exchange market.
According to details on the FMDQ OTC Securities Exchange, the Naira has experienced a significant loss of value, amounting to 27.75% since the beginning of the week when it opened at N780.23/$. Notably, the Naira has seen a cumulative depreciation of about 40% throughout 2023, earning it the designation of one of the worst-performing African currencies by the World Bank.
At the parallel market, the Naira’s exchange rate stood at N1,140/$ as of Thursday. Traders in the parallel market, including individuals identified only as Kadri and Awolu, reported varying rates. Kadri noted, “Dollar is N1,100 if you want to sell. It is N1,140 if you want to buy,” while Awolu expressed willingness to buy the dollar at N1,100, stating, “Dollar is N1,100 if you want to sell to me.”
The continued depreciation of the Naira reflects ongoing economic challenges, prompting concerns among market participants and further highlighting the need for comprehensive measures to stabilize the nation’s currency. The CBN’s efforts to strengthen the foreign exchange market are yet to yield the desired results, and the Naira’s performance remains a critical indicator of the economic landscape in Nigeria.