On Thursday, the Nigerian naira depreciated to N956/$ on the official Investor and Exporter forex window, reflecting a 13.78% decline from the N840.53/$ closing rate the previous day. This drop was attributed to a 46.77% reduction in dollar supply. Data from the FMDQ Securities Exchange revealed that the turnover of dollars traded in the market also fell from $198.21 million on Wednesday to $105.50 million.
Despite recent efforts by the Central Bank to address the backlog of foreign exchange forward contracts, the naira remains unstable, making it one of the worst-performing currencies globally. The World Bank reported a 40% loss in the naira’s value since June. The Economic Intelligence Unit noted that the CBN lacks the necessary resources to clear the backlog of forex orders, adding to the pressure on the naira.
The ongoing instability raises concerns about the naira’s future performance and the impact on foreign investors and exchange rate stability.