In the aftermath of the Easter holidays, the exchange rate between the Nigerian Naira and the US Dollar has further illustrated the economic challenges currently facing Nigeria.
According to the Central Bank of Nigeria (CBN), the naira depreciated to N1,602.6318 per dollar on the Nigerian Foreign Exchange Market (NFEM) following the two-day holiday.
This represents a decline from the previous trading rate of N1,599.9384 per dollar on Thursday.
Similarly, the parallel market has mirrored this downward trend, with the local currency falling to N1,612 per dollar.
Analysts attribute the naira’s decline to several factors, including fluctuations in oil prices—Nigeria’s primary export—and ongoing economic policies aimed at stabilising the currency. Despite the CBN’s active interventions in the foreign exchange market to bolster the naira, the demand for foreign currency remains robust, driven by import requirements and a preference for dollar savings amid rising inflation.
The exchange rate has exhibited significant volatility, with increasing discrepancies between the official and parallel market rates. Experts advise businesses and individuals to stay alert to the potential impacts of global economic conditions, domestic policies, and market sentiment on the naira’s value.
As Nigeria navigates the economic landscape in the wake of the holidays, stakeholders are closely monitoring how the exchange rate will develop in the forthcoming weeks.
