Addressing naira's worsening exchange rate
Naira and dollar


Naira strengthened marginally against the U.S dollar at the official market on Wednesday, after the currency witnessed a marginal loss at the market segment in the previous session on Tuesday.

The local currency fell against the US dollar to close at N415.07/$1 on Tuesday 2nd November 2021, representing a 0.02% depreciation compared to N414.98/$1 recorded at the close of trading activities on Monday.

On the other hand, the naira remained flat against the US dollar at the parallel market on Tuesday to close at N570/$1, the same as recorded at the close of trading activities on Monday, 1st November 2021. This is according to information obtained from BDC operators in Lagos.

Nigeria’s foreign reserve retreated for the second time in a row as it declined by $29.35 million to close at $41.79 billion as of Monday, 1st November 2021. This represents a 0.07% drop compared to $41.82 billion as of 29th October 2021.

However, according to data from FMDQ securities exchange windows where forex is officially traded, the local unit exchanged hands with the greenback currency at N414.80 to a dollar on Wednesday.

The currency’s performance on Wednesday represents a N0.27 or 0.10 per cent depreciation from N415.07 it traded in the previous session on Tuesday.

Naira maintained an intraday high of N404.00 and a low of N444.00, the same range it touched in the previous session on Tuesday, before closing at N414.80 to a dollar on Wednesday, recording a foreign exchange turnover of $133.37 million.

Black market dealers n Uyo said they exchanged the currency at N560.00 and sold at N565.00 to a dollar on Wednesday, while dealers in Abuja exchanged the naira at N565.00 and sold at N568.00 to a dollar on Wednesday, the same rate it has been trading since the opening of the week sales.

Last week, the first female Senior Advocate of Nigeria, Chief Folake Solanke, described the depreciation of the naira as disastrous, calling on the Central Bank of Nigeria to prevent a further decline of the currency’s value.

Solanke was delivering her keynote address during the 20th anniversary of Women in Management, Business and Public Service in Lagos.

She said, “About five decades ago, the naira was as strong as the United States dollar and at par with the pound sterling. Now, unfortunately, the naira is nearly 600 to a dollar. It is unspeakable.

“The Structural Adjustment Programme of the International Monetary Fund and its cousin, the World Bank, started the naira descent. People are now starving because of the astronomical cost of food items.

“This calamity is disastrous for the country. WIMBIZ can engage Mr Godwin Emefiele, the governor of the CBN, to stop the bleeding of the naira.”

She urged WIMBIZ to advocate the restoration of the naira and a reasonable exchange rate.

“It is possible. Some people say that by December, it would be N750 to a dollar. It must not happen. We should not allow the naira to sink into N1,000 for a dollar and then sink to nothingness,” she added.

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