Naira Hits New Low as Currency Depreciates to N1,537.96
The Nigerian naira experienced a significant depreciation, closing at N1,537.96 against the US dollar at the official market on Friday. This marks one of the worst depreciations in recent times, with the naira crossing the N1,500 mark.
Throughout the week, the exchange rate fluctuated between N1,500 and N1,515 per dollar before slightly strengthening on Thursday, closing at N1,499 at the Nigeria Autonomous Foreign Exchange Market (NAFEM). However, it depreciated again to N1,537 on Friday.
The Central Bank of Nigeria (CBN) issued several circulars aimed at stabilizing the foreign exchange market, including setting a limit on foreign currency transfers from crude export proceeds by international oil companies to their parent firms. According to the circular issued on February 14, banks are now allowed to transfer a maximum of 50% of crude export proceeds to oil companies abroad.
Additionally, the CBN issued another circular halting the payment of cash for basic travel allowance (BTA) and Personal Travel Allowance (PTA). Despite these measures, the naira continues to lose value, depreciating by N40 against the US dollar. The British pound also exchanged for N1912.4400 at the official market.
The depreciation of the naira raises concerns about the stability of the country’s currency and its impact on the economy. The CBN’s efforts to stabilize the forex market through these circulars are yet to yield the desired results, as the naira continues to face downward pressure. Stakeholders are closely monitoring the situation, hoping for a turnaround in the currency’s fortunes.
Daily Trust
