Naira's Persistent Depreciation Against US Dollar
The Nigerian naira has reached an unprecedented low against the US dollar in both the official and parallel foreign exchange markets, exacerbating the nation's ongoing foreign exchange crisis. Data from FMDQ revealed that the naira's value declined from N1,574.62 per US dollar on Monday to N1,537.96 on the preceding Friday.
This signifies a loss of N36.66 or 2.3%, compared to the N1,537.96 recorded at the end of trading on Friday. Similarly, in the parallel market, the naira fell to N1,660 per US dollar on Monday from N1,590 on the previous Friday, as confirmed by Dayyabu Mistila, a Bureau De Change operator.
This occurrence coincides with a crackdown on illegal Bureau De Change operators by the Economic and Financial Crimes Commission (EFCC), leading to the arrest of 50 individuals in Wuse Zone 4, Abuja, on Monday.
Despite the Central Bank of Nigeria's introduction of new guidelines last week, which included discontinuing the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash, and preventing international oil companies (IOCs) from repatriating 100% of their forex revenue, the naira's depreciation persists.
Efforts by the CBN and the Nigerian government have so far been unable to stabilize the fluctuating and downward trajectory of the naira against the US dollar and other foreign currencies in the forex market.