The Nigerian naira showed signs of improvement against the dollar in the official market on February 13th, 2024, after experiencing a sharp decline the previous day.
Forex turnover surged by 202.97%, reaching $271.50 million, indicating heightened activity.
The naira appreciated by 2.36%, closing at N1499.07 to a dollar by the end of the business day, following a record low of N1,534.39 per dollar. This increase in forex turnover was attributed to the Central Bank of Nigeria’s recent efforts to address excessive foreign currency speculation and hoarding.
However, the exchange rate worsened in the black market, sliding to N1517/$1, while in the cryptocurrency market, the naira depreciated, crossing N1,549.13/$1.
Overall, the Nigerian naira has experienced a significant devaluation, losing about 68% of its value since the implementation of the foreign exchange unification policy. Concerns persist over dwindling external reserves, projected to drop to $24 billion this year from $35.09 billion. The effectiveness of CBN interventions remains crucial for stabilizing the forex market and restoring confidence in the Nigerian economy.
