The Nigerian Naira took another hit in the official foreign exchange market, trading at N1,498.98 to a Dollar on Monday. The latest figures from the Central Bank of Nigeria (CBN) confirm a depreciation of N6.49, representing a 0.43 percent decline compared to Friday’s closing rate of N1,492.49. The setback comes after the Naira recorded a three-day appreciation the previous week, raising concerns over the currency’s ability to maintain a steady trajectory amid ongoing economic pressures.
The decline in value underscores the volatility of Nigeria’s foreign exchange market, despite CBN’s recent policy interventions aimed at stabilizing the currency. Experts suggest that while the Naira has shown resilience since December 2024, fluctuations are still expected due to global market dynamics, forex demand, and investor sentiment.
Market analysts continue to monitor the impact of the apex bank’s reforms, which focus on transparency, improved liquidity, and curbing speculation. The introduction of measures such as clearing forex backlogs and tightening controls on foreign exchange inflows has played a crucial role in stabilizing the currency over the past few months. However, the Naira’s latest slip raises fresh questions about the long-term sustainability of these policies.
Traders and investors remain cautiously optimistic, with some expressing concerns over the pressure on the foreign exchange reserves. The fluctuating value of the Naira affects various sectors, from import-dependent businesses to everyday consumers, as exchange rate instability directly influences the cost of goods and services in Nigeria.
With global economic uncertainties, experts warn that the Naira’s movement in the coming weeks will depend largely on foreign capital inflows, remittances, and Nigeria’s ability to boost non-oil exports. The CBN is expected to continue refining its foreign exchange policies to strike a balance between demand and supply while maintaining confidence in the market.
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