By Akinsuroju Olubunmi
Naira plummets to N1089/$ on official I&E window
The naira witnessed a significant decline, reaching N1089.51/$ on the official Investor and Exporter (I&E) window, marking a 27.19% drop from Monday’s closing rate of N856.57/$, according to data from the FMDQ Securities Exchange.
Trading on Tuesday saw the naira open at N922.22/$, reaching a high of N1251/$ and a low of N720/$ before settling at N1089.51/$. The day’s total forex turnover amounted to $97.45 million.
This recent fall is the fourth time the naira has closed below N1,000 on the official window. Despite efforts by the Central Bank of Nigeria (CBN) to address backlogs of matured foreign exchange obligations and paying $2 billion, the naira’s decline persists.
The current depreciation occurs amid government initiatives to boost liquidity in the foreign exchange market, including a $2.25 billion foreign exchange support facility from the African Import-Export Bank. However, experts highlight the need for sustained efforts to attract foreign exchange inflows and stabilize the naira.
Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, emphasizes the importance of building reserves and attracting foreign exchange inflows to address supply issues. He remains optimistic that taking the right steps will lead to naira stabilization, reduced inflation, improved growth, and enhanced living standards.
Naira Depreciation, Forex Market, Economic Outlook