The Naira has experienced a significant decline in value, reaching ₦1,300 per US dollar at the parallel market. This represents a further depreciation in the parallel market exchange rate. Bureau de Change operators have confirmed the rates, with reports of increased demand contributing to the depreciation.
Meanwhile, the naira closed trading on the Peer-to-Peer cryptocurrency window at ₦1,315.3 per US dollar. The Bureau de Change operators have indicated the challenges faced in meeting the growing demand for foreign exchange.
In addition, the naira’s decline is observed on the Binance P2P platform, where it closed at ₦1,315.3 per US dollar. Nigeria has one of the largest peer-to-peer exchange volumes in the cryptocurrency market, as reported by blockchain firm Chainalysis.
Despite efforts by the government to boost liquidity in the official foreign exchange market, the naira’s fall persists. The official Investor and Exporter Window saw a significant reduction in dollar supply by 89.13% in the last five days. This comes despite recent initiatives aimed at improving liquidity in the official market.
The naira’s depreciation raises concerns about the impact on the economy, inflation, and the purchasing power of citizens. The Central Bank of Nigeria and other relevant authorities continue to grapple with measures to stabilise the exchange rate and manage the country’s foreign exchange reserves effectively.