Naira Loses More Value Against US Dollar, Nigerians Blame 2 New Platforms, AsK FG to Close them

• Nigerian currency has continued to perform poorly in the last few days against the US dollar and other currencies
• The latest data shows that the naira has fallen against the dollar in both the official and unofficial foreign exchange markets
• Nigerians have raised concerns about two new cryptocurrency platforms, describing them as serious threats

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The value of the Nigerian currency has once again depreciated in both the official and unofficial foreign exchange markets.

According to data from the FMDQ Securities Exchange, the naira closed at N1,234 to the dollar in the official foreign exchange market on Monday, April 22, 2024.

Read also

Naira loses to pound sterling as CBN governor clears air on depleting reserve

Data obtained from FMDQ securities showed that the naira at the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed at N1,234 /$1 against the US dollar on Monday, April 22, 2024

Monday's exchange rate means the naira fell by N65, or 5.26%, compared to the N1,169.99/$1 recorded on Friday, April 19, 2024.

Nigeria's currency in unofficial markets

It was the same story for the naira in the black market as the Nigerian currency depreciated against the US Dollar on Monday.

A BDC trader, Abudulahi told Legit.ng:

"The market is difficult to understand, today we record losses, tomorrow profit.

"On Monday, naira fell by N100 to trade at N1,250/$1, in contrast to the preceding day’s value of N1,150/$1."

Naira and FX reserves

The weakening of the Nigerian currency comes amid concerns about the depletion of foreign exchange reserves, which are a strong backbone for the defence of the naira.

Read also

US company describes naira as best performing currency in the world, makes new prediction

Since the report of the foreign reserves dropping to a 7-year low, the naira has struggled in the foreign exchange markets.

However, Punch reports that Yemi Cardoso, the governor of the Central Bank of Nigeria, has assured that there is no plan to defend the naira.

Speaking at the International Monetary Fund/World Bank Spring Meetings, the CBN governor stated that the bank would refrain from intervening in the exchange unless unusual circumstances arose, stressing that the recent slight shift in reserves was unrelated to defending the naira.

Nigerians identify two new platforms as threats to the naira

Earlier, Legit.ng reported that Nigerians identified the emergence of two cryptocurrency platforms as the reason for the recent fall of the naira.

The earlier decline of the naira was attributed to alleged market manipulation by Binance.

Nigerians have blamed the latest depreciation on two new crypto exchange platforms.

Source: Legit.ng