The Naira has experienced a significant setback, reversing its recent gains and falling back to approximately N1,745/$1 on the parallel market.
This sharp decline follows a brief period when the Naira had dipped below N1,600 at the end of last week.
Previously, the exchange rate was around N1,685/$1. However, as business activities resumed in full swing, the quotes quickly depreciated, indicating that last week’s gains may have merely constituted a temporary reprieve, often referred to as a “dead cat bounce.”
As of 10 am on Wednesday, December 11, Nairametrics reported that some P2P exchanges were quoting N1,715/$1, while certain IMTOs cited N1,745. Stock trading apps like Bamboo and Trove reported rates of N1,730/$1 and N1,736/$1, respectively.
In contrast, the official market’s exchange rate between the Naira and the US dollar closed at around N1,525/$1 on Tuesday, marking its strongest close since the introduction of the EFEM.
Additionally, BDC operators attribute the Naira’s decline to speculative pressures that persist despite the Central Bank of Nigeria’s (CBN) implementation of a more robust trading platform.
