Naira Hits Two-Month Low at N1,545 per Dollar

Summary:
The Nigerian naira has depreciated to a two-month low, trading at N1,545 per dollar in the parallel market. This marks a 0.65% drop from N1,535 on Monday, the weakest since May 14, 2024, when it hit N1,550 per dollar. This decline comes despite an increase in Nigeria’s foreign exchange reserves to $34.77 billion as of July 5, 2024. The naira’s value has decreased by more than 100% since the introduction of the ‘Willing buyer, willing seller’ FX model last year. Nigeria is grappling with high inflation at 33.75%, partially due to economic reforms like the removal of petrol subsidies. Efforts by the Central Bank of Nigeria (CBN) to stabilize the currency, including reintroducing weekly sales of $20,000 to Bureau de Change operators, have not met expectations. CBN Governor Olayemi Cardoso and Monetary Policy Committee member Bala Bello cited supply-demand imbalances as the primary pressure on the naira.