By Akinsuroju Olubunmi
Naira hits record lows in Forex markets amid Dollar scarcity.
The Nigerian Naira faced unprecedented depreciation on Tuesday, marking all-time lows at both official and unofficial forex markets. At the official market, it traded at N1,482.57 per US dollar, indicating a 10% drop from the previous session’s rate of N1,348/$1. Simultaneously, the unofficial market recorded an even lower value, with the dollar exchanged at N1,491.00, highlighting the growing disparity between the official and unofficial rates.
As concerns about the Naira’s continuous decline persist, the Central Bank of Nigeria (CBN) attributed the situation to inadequate dollar liquidity. In response, the CBN assured measures to enhance supply and address the backlog of foreign exchange demand. Notably, the central bank injected an additional $64.44 million into the aviation sector, clearing all verified dollar backlogs owed to foreign airlines operating in Nigeria. The total disbursement to the aviation sector now stands at $136.7 million.
The CBN, in a published circular, expressed concern about traders disseminating inaccurate information, emphasizing a commitment to a transparent market functioning on a willing buyer, willing seller basis. The bank warned against market manipulation through false transaction details and asserted its dedication to a well-functioning and transparent financial landscape.
Naira,
Dollar Scarcity