Emmanuel OchayiThe naira experienced a sharp decline on Wednesday, dropping from N1,600 to N1,780 per dollar in the black market.
This sudden reversal has sparked concerns among traders and market analysts who had observed a brief period of appreciation for the local currency.
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The recent decline is the second consecutive depreciation of the naira since the introduction of the Exporters and Investors’ Foreign Exchange Market (EFEMS). Initially, the currency showed signs of recovery, but it has since lost N85, moving from N1,580 to N1,665 on Tuesday, and eventually to N1,780 on Wednesday.
Dealers and Platforms Report Mixed Rates
Rates in the black market now hover above N1,700 per dollar, raising doubts about the stability of the currency.
While some dealers quoted the naira at N1,715 per dollar, others reported rates as high as N1,745. International Money Transfer Operators (IMTOs) offered similar figures, reflecting growing uncertainty in the forex market.
Additionally, stock trading apps like Grey and Trove displayed rates of N1,728 and N1,736 per dollar, further highlighting the fluctuations.
READ ALSO: Naira Appreciation: Is Recovery Process By CBN Sustainable?
Market Reactions to Naira’s Decline
Market analysts believe the recent losses signal that the earlier gains were temporary. Traders and forex market observers are now watching closely for any policy adjustments from financial authorities.
The growing demand for foreign currency is seen as one of the factors putting pressure on the Naira.
Outlook for Naira’s Performance
With the naira’s continued depreciation, businesses and importers may face higher costs for foreign exchange. Analysts suggest that stabilising the currency will require decisive action from the Central Bank of Nigeria (CBN) to address the widening gap between official and parallel market rates.
As the naira’s performance remains volatile, stakeholders in the forex market await further developments that could impact Nigeria’s economic landscape.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
