The Nigerian naira has lost ground against the US dollar in recent days, experiencing three instances of depreciation in the foreign exchange market.
According to data from FMDQ, on Friday, the naira weakened to N1,169.99 per dollar, compared to Thursday’s rate of N1,154.08. This marks a decrease of N15.91 from the previous day’s trading figure.
This downward trend began with a depreciation on Tuesday, breaking months of stable gains. Subsequently, on Thursday, the naira saw another decline, losing N81 against the dollar. In total, the naira has lost over N96.91 to the dollar within three days, disappointing many Nigerians who had hoped for a stronger currency.
Governor Olayemi Cardoso of the Central Bank of Nigeria discussed the factors influencing the naira’s performance. While some analysts pointed to the depletion of Nigeria’s foreign reserves, Cardoso clarified that foreign loan repayments were the primary cause.
As of April 15, the nation’s FX reserves had reduced to $32.29 billion, indicating ongoing challenges in stabilizing the currency.