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Nigerian naira falls to new record low on official market -FMDQ Exchange

February 23, 2024
Nigerian naira falls to new record low on official market -FMDQ Exchange

According to data from the FMDQ Exchange, 's naira currency plunged to a new record low in intraday trading on Thursday, slipping below rates observed on the parallel market despite efforts by the central bank to bolster liquidity.

The naira dipped as low as 1,851 against the on the official market, significantly lower than the approximately 1,800 rates quoted in street trading. However, it later rebounded to close at around 1,571 to the dollar, as per FMDQ data.

Despite interventions by the central bank through dollar sales, Africa's largest economy continues to grapple with severe foreign-currency shortages, leading to successive all-time lows for the naira on both the official and parallel markets.

Reports indicate that the central bank conducted dollar sales totalling $100 million this week alone as part of its interventions, bringing the total interventions since the previous week to $300 million.

Next week, the central bank is set to convene its inaugural interest rate meeting under the leadership of Governor Olayemi Cardoso. Governor Cardoso has pledged to support the naira and combat inflation, which currently stands at its highest level since mid-1996.

The persistent challenges facing Nigeria's currency underscore the ongoing efforts required to stabilize the financial markets and address underlying economic vulnerabilities in the country.

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