Victor EzejaThe value of the naira recorded a decline of 1.57 per cent as the exchange rate rose to N1,627.40/$1 in the official market on Friday, 8 March 2024.
The naira had on Thursday closed trading at a rate of N1,602.17 against one US dollar in the official foreign exchange market window. This is according to data published by the Nigeria Autonomous Foreign Exchange Market (NAFEM), the country’s official exchange rate window.
According to the NAFEM data, the forex market recorded an intraday high of N1,640.00 and a low of N1,413.00.
The currency turnover rose by 63.5 per cent to $269.35 million from $164.76 million recorded on Thursday.
The naira has continued to trade above N1,600 for the past three days after the value dropped on Tuesday, 5 March 2024 to ₦1,602.43/$1 after three consecutive days of trading below that mark in the official foreign exchange market window. After dropping on Tuesday, it declined further on Wednesday, 6 March to N1,605.74/$1 and witnessed a slight gain on Thursday, 7 March closing trading at N1,602.17/$1.
READ ALSO: Naira Drops To ₦1,602.43/$ After 3-Day Winning Streak In Official Market
According to sources in the parallel market also commonly known as the black market, the dollar sold for N1,618 naira on Friday, 8 March 2024.
The naira recorded a 1.7 per cent drop in value in exchange with Great Britain Pound (GBP) from N2,015/£1 to N2050/$1 on Friday, 8 March 2024.
The Central Bank of Nigeria has continued to combat factors responsible for the continued depreciation of the naira since it was floated in the foreign exchange market in June 2023. The apex bank has in the last two months, come up with a series of policies aimed at boosting liquidity in the forex market.
While these reforms were yet to yield significant benefits, economic experts have repeatedly said that only monetary policy measures can’t solve the forex crisis in the West African country’s economy.
Chief Economist and Partner with SPM Profesional, Mr Paul Alaje, stressed the need for resolving energy crisis and improving production to boost exports in the country.
“The authorities cannot use monetary solutions alone to solve this current FX challenge. The solution lies with improved productivity and growing exports. These will occur when we promote strong local manufacturing and agro-processing in all states and regions. We must also promote agricultural plantations in all sub-nationals.
“Therefore, no electricity means low productivity. Low viable manufacturing sector means no export. Low export means a weaker naira.” Alaje stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
