On Monday, the foreign exchange market saw the continued depreciation of the dollar-to-naira exchange rate.
According to FMDQ data, the Nigerian currency’s value against the dollar dropped to N1586.71 on Wednesday, down from N1548.76 recorded on Tuesday, marking a loss of N37.95.
Simultaneously, in the black market, the naira also weakened, reaching N1,585 per dollar on Wednesday compared to N1,580 the previous day.
Reports from NewsNow indicate that the naira has been consistently losing value since last week, despite the Central Bank of Nigeria’s efforts to provide foreign exchange to authorized dealers.
Bismarck Rewane, the Chief Executive of Financial Derivatives, commented on the naira’s sharp decline during an interview with Channels TV, attributing it to the CBN’s recent decision to raise interest rates by 50 basis points to 26.75 per cent on Tuesday.
Last week, the CBN revealed that the country’s foreign exchange reserves are facing pressure due to a surge in demand, particularly amid the summer holidays.