With increasing pressure in Nigeria’s Foreign Exchange Market, the dollar-to-naira exchange fluctuated this week, settling at N1,517.24/$1 on Friday.
The naira began the week on a positive note, closing at N1,499/$1 on Monday, slightly stronger than N1,500/$1 recorded the previous business day.
However, this momentum was short-lived, as the currency weakened from Tuesday onward, closing the week at N1,542/$1, a 2.8% decline from last week’s close of N1,500/$1.
Intraday trading saw the naira reach a high of N1,615/$1 and a low of N1,505.75/$1 in the official market.
The naira performed even worse in the parallel market, closing at N1,560/$1, a 4.34% decline from its opening price of N1,495/$1 at the start of the week.
Similarly, the naira fell 3.2% against the pound sterling, depreciating from N1,870/£1 on Thursday to N1,930/£1 on Friday, a 3.76% drop for the week.
While the naira managed to hold its ground against the euro at N1,580/€1 on Friday, it still recorded a 3.94% decline for the week.
Businesses and consumers are at the receiving end of the fluctuating exchange rate. Importers of essential goods face rising costs, pushing up retail prices, while manufacturers struggle with dollar-denominated expenses.
Experts attribute the naira’s depreciation to dollar shortages and speculative activities, with additional concerns over CBN’s intervention strategies and Nigeria’s external reserves.
