The Nigerian Naira experienced a significant loss in value against the United States Dollar on Monday, recording a sharp 7.08% depreciation compared to its exchange rate of N736.62 on September 8. The fluctuations in the foreign exchange market have sparked concerns among investors and economists.
At the Investors and Exporters (I&E) window, the Naira struggled, exchanging at a rate of N773.50 to the Dollar. This decline has raised questions about the stability of the local currency and its impact on Nigeria’s economy.
The day’s trading witnessed a range of exchange rates, with the highest point reaching N804.15 to the Dollar before settling at N773.50. On the other end of the spectrum, the Naira hit its lowest point at N722.39 to the Dollar, illustrating the volatility in the market.
The open indicative rate, which is closely watched by market participants, closed at N771.49 to the Dollar on Monday. This rate is indicative of the general market sentiment and serves as a reference point for various stakeholders.
Market data reveals that a total of $37.86 million worth of transactions took place at the Investors and Exporters window on Monday. This suggests a high level of activity within the foreign exchange market despite the Naira’s depreciation.
Analysts are closely monitoring the situation, with some attributing the Naira’s decline to factors such as fluctuating oil prices, global economic uncertainties, and domestic economic challenges. The Central Bank of Nigeria (CBN) has previously intervened in the foreign exchange market to stabilize the Naira, but the recent fluctuations have prompted calls for more decisive actions.
As the Naira’s value remains under scrutiny, businesses and investors in Nigeria are anxiously awaiting further developments in the foreign exchange market and hoping for measures to restore stability to the local currency.
