In a recent development, despite efforts by the Central Bank of Nigeria to fortify the foreign exchange market, the naira concluded trading on the Investor & Exporter forex window at N996.75/$, marking a substantial 13.95% decline from Wednesday’s closing rate of N874.71/$. Throughout the week, the naira has seen a cumulative depreciation of 27.75%, commencing from its Monday opening rate of N780.23/$, as reported by FMDQ OTC Securities Exchange.

Despite a temporary strengthening against the dollar last week due to the clearing of the apex bank’s backlog, the naira has witnessed a consistent downturn in both official and parallel markets. The World Bank has now labeled the naira as one of the worst-performing African currencies in 2023, with an overall devaluation of approximately 40%.

In the parallel market, the depreciation continues, with the currency dropping from N950/$ on Friday to nearly N1,140/$ on Thursday, reflecting a substantial 20% decrease, according to Bureaux De Change operators interviewed by The PUNCH.

Traders, such as Kadri and Awolu, revealed the prevailing rates in the parallel market, indicating a selling price of N1,100 and a buying price of N1,140 for the dollar. This downward trend has led to concerns among experts, with Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, attributing the dollar’s gain against the naira to speculators and resistance from those who purchased it at higher rates.

Addressing the situation, Dr. Tope Fasua, Special Adviser to the President on Economic Matters, emphasized the government’s commitment to implementing policies aimed at bolstering the local currency. Fasua asserted that the central bank is rolling out measures to counteract speculation, ensuring stability in the currency market.