Naira Plunges Against Dollar Despite CBN’s Intervention

The Naira continued to lose value against the US Dollar in the foreign exchange market on Wednesday, despite the Central Bank of Nigeria’s (CBN) efforts to stabilize the currency.

The Naira fell to N931.23 per US dollar on Wednesday from N878.57 per Dollar on Tuesday, according to data from FMDQ. This represents a 6 per cent decline in the local currency compared to the previous day.

The Naira also dropped at the parallel forex market, where it traded at N1320 per dollar, a 3.03 per cent decrease from the previous day. The parallel market is where individuals and businesses buy and sell foreign currencies without the CBN’s regulation.

The depreciation of the Naira comes amid the CBN’s warning to foreign exchange defaulters, who fail to comply with the bank’s rules and regulations. The CBN said in a statement on Wednesday that it had cleared the entire forex backlog of 14 banks and injected approximately $2 billion across sectors.

The CBN’s Acting Director of Corporate Communications Department, Sidi Ali, said that the bank was committed to ensuring liquidity and stability in the forex market.