Despite spirited efforts by the Central Bank of Nigeria (CBN) to boost the foreign exchange market through interventions, the nairay’s downward trend continues, raising concerns about its potential impact on the broader economy.
The depreciation of the naira goes on despite the federal government receiving a $2.25bn foreign exchange support from the AfreximBank as well as the Central Bank of Nigeria (CBN)) offset of $61.64m Nigeria owed foreign airlines.
A look on the Nigerian Foreign Exchange Market (NFEM) window, which showed that on the day the CBN announced it received the funds, December 29, the naira was purchased at N898/$ and sold at N899/$.
The price increased on January 2, to N913 per dollar. It further went up to N960.9k by January 3.
By January 4, the price had risen to N964. The Naira, however, appreciated by January 5, selling at N877 per.
By January 8, the price further reduced to N854 but the price increased to N952 while January 10 it rose to N1,082.
The black market has been on the increase as the naira was sold at N1178 on January 3.
By January 4, the price had increased to N1210 and by January 5, it was sold at N1220.
Likewise, on January 6 it was sold at N1222. This further increased to N1225 and by January 7 and on January 8, it was sold at N1235.
As of January 9, the price has risen to N1243.
