Naira continues to decline, hits record low against the Dollar

The Naira took a significant hit in the foreign exchange market, dropping by N27.58 against the dollar between Monday and Tuesday, according to FMDQ data.

The Naira depreciated for two consecutive days, reaching N1,592.06 on Tuesday, down from N1,564.48 last Friday. The black market also saw a decline, with the Naira losing N15 on Tuesday, exchanging at N1,615 per dollar compared to N1,600 last Friday.

Further analysis indicates that the Naira has been on a downward trend since last week, attributed to the Central Bank of Nigeria’s Retail Dutch Auction System.

Recall that the apex bank’s commenced the Foreign Exchange auction at the beginning of August to curtail the FX demand spike.

The rDUS saw CBN sell $876.26 million to end-users through the banks.

However, weeks into the initiative, the Naira has lost its steam.

This is why the President, Association of Bureau De Change Operators, Aminu Gwadabe said the apex bank is inconsistent with its FX interventions.

Meanwhile, the CBN in a statement by its spokesperson, Sidi Hakama on Tuesday reiterated that its policies and interventions would guarantee FX stability in the country.