The exchange rate between the Naira and Dollar on the official NAFEM window fell to a week to date low of N1,234.49/$1 on Monday, 22nd of April, 2024.
This is according to data from the FMDQ where the exchange rate is traded officially and end of day posts quoted.
This is a sharp depreciation from the official exchange rate N1,169.99/$1 recorded on Friday 19th of April 2024. Nairametrics had reported, Friday’s closing rate was also a 6-day low.
The exchange rate strengthened to around N1,072.74 on Wednesday as traders projected the local currency could trade below N1,000/$1 for the first time.
However, the latest drop appear to coincide with the remarks of the apex bank Governor, Yemi Cardoso, who stated that the intent of the bank was not to defend the Naira, when asked about the sudden drop in external reserves.
Data from the FMDQ for the 22nd of April 2024 indicate the exchange rate closed at N1,234.49/$ representing a 5.22% decline in one day.
The sudden downturn comes after a period of notable appreciation, where the Naira was briefly touted as the best-performing currency globally, bolstered by the Central Bank of Nigeria’s (CBN) foreign exchange reforms and strategic economic policies.
The recent depreciation seems to align with statements from CBN Governor Yemi Cardoso, who recently emphasized that the central bank’s current strategy is not to defend the Naira at any cost.