“Naira is Going Back to 1900/$.” Nigerians React as Naira Resumes Loss After Big Gain

• On Monday, April 22nd, the naira fell to close at N1,234 to the dollar compared to the N1,169.99/$1, as recorded on Friday, the previous trading day
• The depreciation occured after the local currency had earlier strengthened to around N1,072.74/$ and cloisng in on N1,000/$ predicted by experts
• Nogerians have reacted to the development on social media, opining that the recent CBN policies may be unsustainable and temporary

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The naira started the week on a negative note, depreciating by N65 or 5.26% from N1,169.99/$1, as recorded on Friday.

On Monday, April 22, the local currency closed at N1,234 to the dollar, according to the official rate obtained from the FMDQ.

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Similarly, according to BDC operators, the dollar sold for N1,270 at the unofficial market.

This came after the local currency had strengthened to around N1,072.74 as traders projected the naira could trade below N1,000/$1 for the first time.

How Nigerians react

This has raised concerns for Nigerians, who have begun to regard the recent CBN policies as unsustainable and temporary.

They opined on social media X that the local currency may return to the N1,900/$ high, which it sold some weeks ago.

@Karovoni said:

"Is it mere coincidence that the Naira starts to tumble after the report of foreign reserves depletion?"

@Faseun4You noted:

“The ways to strengthen the naira is to boost local production, increase exports, provide soft interest loans to farmers/industries in Nigeria, adequate security, reduction in fuel price and others… All these white elephant CPR for the naira is not sustainable.”

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@KelechiUche10 stated:

"We know that they can't sustain the abracadabra. We're still watching. Let's see how they will continue to pump money to bring down FX without growth in the economy and in the midst of inflation."

@NNkwuaku opined:

“NAIRA is going back to 1900/$. The Cardoso and Tinubu's magic has ended in disgrace. Our foreign reserve is on the red bar now.”

@benitokez noted:

“I said it that the appreciation of the Naira won't last because it is artificial. When you deplete your foreign reserves to shore up the naira, it can't be sustained. What the FG is doing is just subsidizing the naira.”

@Generallifefor posited:

“Shey Dey were jumping up dat it was drop make dem Dey play …. Nah now the journey just start”

@NoisyBoy_05 stated:

“The recent positive changes where artificial and unsustainable nothing on ground to back it up. No export nothing…. It would have been nice if it was backed up by other factors.”

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@agbochibuzor7 noted:

"I exchanged for #1,275 yesterday night and I almost cried. I thought they said it was coming down."

CBN governor Cardoso finally explains why the naira

Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has said that the apex bank is not using Nigeria's foreign reserves to protect the naira.

He spoke in light of the recent drop in Nigeria's foreign reserves and the sharp increase in the value of the naira on the foreign exchange market (forex).

Legit.ng earlier reported that recent Bloomberg findings showed that Nigeria is depleting its foreign exchange reserves at a rate not witnessed in the last four years.

Source: Legit.ng