Naira Traded Against the Dollar on Thursday for N956/$

On Thursday, the naira fell to N956/$ on the official Investor and Exporter forex window as dollar supply fell by 46.77%.

According to the data from the FMDQ, this is a 13.78% decline from the N840.53/$ on Wednesday. Also, it was reported that the turnover of dollars traded in the market declined to $105.50 million from $198.21 million on Wednesday.

From the insights, the naira began trading at N800.90/$ for the day before hitting a high of N1136/$ and N615/$ within the day. It eventually closed trading at N956.33/$.

Despite the Central Bank of Nigeria's moves to clear the backlog of foreign exchange, the naira has continued its unstable moves. The World Bank disclosed that currently, the naira is one of the worst-performing currencies in the world, with over 40% drop in its value since June. 

It was also announced recently by the Economic Intelligence Unit, a research and analysis division of the Economist Group, that the CBN needs more power to clear the backlog of foreign exchange orders. And this has continued to put more pressure on the naira.

It stated, “In Nigeria, an unsupportive monetary policy implies that the naira will remain under pressure, while the central bank lacks the firepower to adequately supply the market or clear a backlog of foreign exchange orders, which will keep foreign investors unnerved. High inflation and a continued spread with the parallel market will leave the exchange rate regime unstable and result in periodic devaluations.”