The Nigerian naira experienced a significant decline in value against the US dollar on Friday, ending the week on a negative note.
According to data from FMDQ, the naira depreciated to N1,617.08 per dollar, a loss of N47.08 from the previous day’s exchange rate of N1,570.00.
Similarly, on the black market, the naira weakened to N1,610 per dollar, down from N1,600 the previous day. A Bureau De Change operator in Abuja confirmed the decline, stating that the exchange rate had dropped to N1,610 per dollar on Friday evening.
This decline reverses the gains made by the naira on Wednesday and Thursday. On a week-on-week basis, the naira has also fallen in value, with the official and parallel foreign exchange markets recording N1,609.29 and N1,595 per dollar, respectively.
Despite the Central Bank of Nigeria’s efforts to stabilize the currency, the naira’s value continues to fluctuate. However, the gap between the official and parallel FX markets has narrowed to N7.08.
The decline in the naira’s value comes as protests against economic hardship enter their second day. The protests, which began on Thursday, are a response to the country’s worsening economic conditions, including high inflation, fuel scarcity, and unemployment.
Economists have warned that the naira’s decline could lead to higher inflation, as imports become more expensive. This could further exacerbate the economic hardship faced by Nigerians.
The Central Bank of Nigeria has implemented various policies to stabilize the naira, including increasing interest rates and introducing measures to boost foreign exchange supply. However, these efforts have yet to yield significant results.
The Nigerian government has also faced criticism for its handling of the economy, with many calling for more effective measures to address the country’s economic challenges. As the protests continue, it remains to be seen how the government will respond to the growing economic concerns.
