The Naira has depreciated significantly against the dollar in the foreign exchange market due to the inflation spike.
According to FMDQ data, the Nigerian currency fell to N1658.97 per dollar on Tuesday from N1552.92 on Monday, resulting in a loss of N106.05.
Further analysis revealed that the naira’s decline exceeded the N88.35 gain recorded on Monday.
At the parallel market, the Nigerian currency remained steady at N1700 per dollar on Tuesday, the same as on Monday.
The update coincides with the National Bureau of Statistics’ announcement on Tuesday that Nigeria’s inflation had increased to 32.70% in September 2024 from 32.15% in the previous month.
Despite interventions by the Central Bank of Nigeria (CBN), Nigeria’s FX market has continued to experience fluctuations in recent months. At the House of Representatives Committee on Banking Regulations, CBN Governor Yemi Cardoso stated that Nigeria’s external reserves stand at $39.12 billion, saying that the country has sufficient reserves.