Emmanuel OchayiIn a turn of events, the Nigerian naira saw a marginal gain against the United States dollar on Tuesday, appreciating to N1,499/$ from its recent all-time low of N1,534/$ on the official Nigerian Autonomous Foreign Exchange Market.
This uptick represents a 2.3% increase or N35 gain, as reported by FMDQ Exchange, a platform renowned for publishing official foreign exchange trading data in the country.
Join our WhatsApp ChannelThe naira’s struggles have been a topic of concern, stemming from various economic policy shifts, including the removal of fuel subsidy and the unification of the exchange rate windows by President Bola Tinubu.
Since May 2023, the local currency has witnessed a depreciation, sliding from N464.67/$ to N1,490/$ at the official market by February 2024.
Concurrently, it plummeted from N763/$ to N1470/$ at the parallel market during the same period.
On Monday, the naira hit a new low of N1,534/$, marking another setback after reaching N1,099.05/$ on December 8. This downward spiral continued with an all-time low of N1,348.63/$ recorded on January 30, 2024.
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Despite these challenges, currency traders remain vigilant. Ibrahim Taura, a Bureau De Change operator in Wuse, Abuja, commented, “We started today’s trade at N1,509/$ but the rate closed at N1,530/$.” He emphasized that market demand for the dollar remains robust.
Additionally, there has been a notable decline in dollar sales by banks, dropping by 54.2% from $253.77 million on Friday to $116.11 million on Monday, according to the latest sales data by the FMDG.
This represents a significant shift compared to the $1.97 billion sold by commercial banks in the previous week.
As uncertainties persist in the forex market, stakeholders are closely monitoring developments, hoping for stability amidst the fluctuations.
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.
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