DAYS AFTER INCREASING HOPE, THE NAIRA LOSES VALUE AGAINST THE US DOLLAR

Baatunji Wusu –

According to reports, the value of the Nigerian Naira has decreased significantly in the foreign currency market relative to the US dollar.
The Naira depreciated by N65.51 against the US dollar on Wednesday, November 8, according to statistics from the official FMDQ market. This represents a decrease of N65.51 from the previous day’s rate of N809.2 per US dollar.

The Naira was reported to have traded at N1,110 per US dollar on the parallel market on Wednesday, slightly higher than the N1,100 rate noted the day before.

Speaking with media about the development, Dayyau Mistila, an operator at a Bureau de Change in Zone 4 Abuja, disclosed that on Wednesday, Nigerians bought dollars at a rate of N1,100.

The Daily Post cited Mistila as adding, “We bought dollars at 1100 per dollar and sold them at N1110 on Wednesday.”
After the Central Bank of Nigeria (CBN) cleared several commercial banks’ and airlines’ foreign exchange backlogs last week, the naira appreciated versus the dollar.

On the parallel market last Friday, the Naira saw a little increase in value relative to the US dollar. The local currency was trading below N1000 in the parallel market, as the dollar depreciated against the Naira.

In recent weeks, the Naira has been steadily gaining momentum against the US dollar, which is widely used. This development is noteworthy since it has reached an exchange rate of more than N1000. The dollar gained more than N200 last week, trading for N950 on Friday evening and below in the morning on the parallel market, up from N1,150 on Thursday.

Nigerians had been jubilant about the development since the local currency had recovered a few times in the previous few days.