The Naira experienced a decline against the US Dollar in the official market, closing the week at N1,537.96/$1, amidst persistent demand pressures that continued to undermine the currency’s value.
This decrease coincided with a significant downturn in forex turnover, which plummeted by 74% to $84.10 million.
Both official and black-market exchange rates witnessed a devaluation of the Nigerian Naira against the dollar, further compounded by a substantial surge in inflation as reported by the National Bureau of Statistics (NBS) for January 2024.
The inflation rate surged to 29.90%, marking a significant increase from the 28.92% recorded in the previous month.
This data reflects a noteworthy uptick in the headline inflation rate for January 2024, with 0.98% points increase compared to December 2023 figures.
These developments persist despite the Central Bank of Nigeria’s (CBN) implementation of several policies aimed at enhancing the supply of foreign exchange (forex).
Part of the recent policies was the CBN’s announcement that it has stopped international oil companies (IOCs) operating in Nigeria from immediately remitting 100% of their forex proceeds to their parent company abroad.
The domestic currency depreciated at the end of the week by 2.58% to close at N1,537.96 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
