The Nigerian naira has experienced a notable depreciation against the US dollar in the official foreign exchange market. According to recent data from the Central Bank of Nigeria (CBN), the naira’s exchange rate has risen to N1,600 per dollar, marking a depreciation of N31 from its previous rate of N1,569 per dollar2. This shift highlights the ongoing volatility in the currency market, where the naira has struggled to maintain stability against major currencies.
The depreciation of the naira to N1,600 per dollar comes after a period where the currency had hovered around the N1,500 threshold for several months. This change reflects broader economic dynamics and the challenges faced by the Nigerian economy in maintaining currency stability. In contrast, unofficial markets have shown different trends, with the naira trading at rates such as N1,550 for buying and N1,562 for selling in some black market exchanges7. The official rate of N1,600 per dollar underscores the CBN’s efforts to manage currency fluctuations and maintain economic stability.
In recent weeks, the naira has experienced fluctuations across both official and unofficial markets. While the official market has seen the naira depreciate to N1,600, parallel markets have shown some resilience, with the naira strengthening below N1,600 at times8. These fluctuations highlight the complexities of Nigeria’s foreign exchange market, where both official and unofficial rates play significant roles in shaping economic outcomes. The CBN continues to implement policies aimed at stabilizing the currency and boosting confidence in the naira, as part of broader efforts to strengthen the Nigerian economy4.
The exchange rate dynamics also reflect broader trends in the global currency market. For instance, the mid-market exchange rate for the US dollar to naira has been around 1,544.74 NGN recently, indicating a relatively stable position compared to the official market rate1. These differences in exchange rates across markets underscore the need for consistent economic policies to stabilize the naira and promote economic growth in Nigeria.
