The Nigerian Naira depreciated to a record low of ₦1,534.39 against the US dollar at the foreign exchange market on Monday as Nigerians groaned amidst low purchasing power of their currency.
Data obtained from FMDQ by Africa Today News, New York showed that the Naira dropped to ₦1,534.39 per US dollar on Monday from ₦1,469.97 on Friday.
This represents a 4.2 per cent or N64.42 depreciation compared to N1,469.97 recorded at the close of trading on Tuesday.
With the development, the Naira is back to the exchange rate it traded on Monday, January 29, when the Central Bank of Nigeria introduced ‘Financial Markets Price Transparency and Market Notice of a Revision to the FMDQ FX Market Rate Pricing Methodology’ and other reforms.
Similarly, at the Parallel Market, Naira increased to N1,495 per Dollar on Monday from ₦1,490 on Friday.
Meanwhile, the Central of Nigeria governor, Olayemi Cardoso, assured exchange rate stability when he spoke at an interface with the Senate Joint Committee on Banking, Insurance and Financial Institutions in Abuja on Friday.
Meanwhile, the Central Bank of Nigeria, CBN, has given assurance of stability in the naira-dollar exchange rate.
CBN Governor Olayemi Cardoso said this at an interface with the Senate Joint Committee on Banking and Insurance in Abuja on Friday.
“In terms of the volatility of the exchange rate, we are using various tools to ensure the stability of the exchange rate sooner than later.
“I really can’t tell other than to say that I do believe that once all the measures kick in, there will be price discovery that will indeed make sense for everybody.
“We all have a responsibility in ensuring demand and supply. We are working on supply, but on the demand side, we all have to moderate our various interests on that.
“This is to ensure that demand begins to come to a level that is sustainable,” he said.
Cardoso said that the apex bank doesn’t have a magic wand to stabilise the foreign exchange, saying that Nigerians also must reduce their frequent demand for dollars for personal use.