The Naira has experienced a decline against the US dollar in the foreign exchange market, just 24 hours after a temporary relief. Data sourced from FMDQ revealed that the Naira fell to N878.57 on Tuesday, down from N838.95 per dollar on Monday.
This marks a significant N39.62 or 4.72% loss in the local currency compared to its closing rate of N838.95 on Monday. The parallel market also reflected a decrease, quoting at N1280 per dollar on Tuesday, indicating a 1.17% drop from the previous day.
Despite a notable 460.52% increase in forex turnover to $147.81 million at the end of Tuesday’s trading, the official forex market witnessed depreciation. This trend follows the Nigerian government’s receipt of a $2.25 billion foreign exchange boost loan from the African Import-Export Bank just over a week ago.
The Naira, the currency of Africa’s largest economy, has been subject to fluctuations in the forex market since the Central Bank of Nigeria floated the country’s currency on June 14 of the previous year.
In addition to the forex challenges, Nigeria’s headline inflation surged for the twelfth consecutive time, reaching 28.92% in December, as reported by SPRINGNEWS.”