Over the weekend, the Nigerian naira displayed signs of resilience, appreciating by N125 to reach N1,275 per US dollar. This represents a significant 9.8% increase compared to the N1,400 exchange rate at the close of trading on Friday.
The Senate, through its Committee on Finance, has emphasized the urgent need for concerted efforts to address the ongoing instability and continuous depreciation of the naira.
Currency traders in the popular Wuse Zone 4 market attributed the fluctuations in the exchange rate to trading uncertainty and urged government intervention to either increase the currency value or devalue it for market stability.
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Meanwhile, the Association of Bureaux De Change Operators of Nigeria (ABCON) plans to unify the retail end of the foreign currency market to tackle volatility and enhance regulatory compliance.
Before this marginal gain, the naira had experienced a 26.2% loss in two weeks, compared to N1,125 per dollar quoted on April 12, 2023, in the parallel market. Last Monday, the Central Bank of Nigeria allocated $15.83 million to 1,583 BDC operators to enhance liquidity in the unofficial market.
However, data from FMDQ securities exchange showed a continued downward trend against the US dollar at the official foreign exchange window, closing at N1,339/$ on Friday, representing a 2.24% depreciation compared to the previous day.
In response to the latest depreciation, the Senate Committee on Finance called for proactive measures to safeguard the stability and resilience of the currency. Senator Sani Musa, Chairman of the Committee, emphasized the need to address root causes such as fluctuations in global oil prices, fiscal deficits,
and structural imbalances in the economy. The Committee is exploring policy options to mitigate the impact of naira depreciation and foster economic stability through robust oversight, engagement with stakeholders, and targeted interventions to support key sectors.
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