Naira Suffers More Depreciation at N1,669/$, After Independence Day Celebration

Oluwasegun SanusiOctober 3, 20241 Mins read533

The Naira has suffered a significant depreciation against the US Dollar upon resumption of trading after Nigeria’s 64th Independence Day holiday.

Data from the FMDQ Securities Exchange showed that the currency weakened sharply to N1,669.19 per dollar today, a steep fall from N1,541.94 on Monday. This represents a loss of N127.25 against the Dollar, further worsening the naira’s long-standing instability.

Meanwhile, in the parallel market, the Naira slightly recovered, gaining N10 to close at N1,690 per dollar on Wednesday, compared to the N1,700 rate recorded before the holiday.

The sharp decline in the official rate comes from months of continued fluctuations in Nigeria’s foreign exchange market.

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Recall that the Central Bank of Nigeria (CBN) raised its benchmark interest rate to 27.25%.

On September 28, West Africa Weekly reported that the naira reached a record low of N1,667.42/$.

The recent developments have reignited concerns about the state of the economy, despite President Bola Ahmed Tinubu’s call for patience with his economic policies during his Independence Day address.

The naira’s slide began last year after the CBN floated the currency in June 2023, resulting in its continuous devaluation.

In the official market, the naira fell further by 0.54% on Wednesday, closing at N1,658.48, compared to Tuesday’s N1,653.27. The decline intensified following the CBN’s latest monetary policy adjustments.