In the past week, the Nigerian Naira experienced significant depreciation in both the parallel and official foreign exchange markets, losing N30 and N28.48, respectively.
This decline occurred despite the Central Bank of Nigeria’s (CBN) efforts through the Retail Dutch Auction System.
On Friday, the Naira fell to N1,645 against the U.S. dollar in the parallel market, a notable decrease from the N1,615 exchange rate recorded on Friday, August 23, 2024.
Similarly, data from the Financial Markets Dealers Quotations (FMDQ), which tracks official market trading, showed a decline in the Naira’s value to N1,598.56 per dollar this Friday, down from N1,570.14 the previous week.
These developments indicate that the Naira weakened in both foreign exchange markets, despite the CBN’s intervention efforts. Although the turnover of foreign exchange transactions increased from $155.52 million on Thursday to $172.80 million on Friday, the Naira continued to weaken against the dollar over the past seven days.
This depreciation comes just weeks after the CBN reintroduced the Retail Dutch Auction System in response to a surge in dollar demand.
