Weeks after the naira’s surged in the official foreign exchange market, making it the best performing currency in the world, the naira declined in value on Sunday in the parallel market to the surprise of many, depreciating in value against the United States Dollar to N1,234/$ from N1.050/$ on Friday.
By the current exchange rate, the naira fell by N65 or 5.26 per cent from N1,169.99/$1 recorded on Friday.
The naira had appreciated to N1,072.74 on Wednesday as traders anticipated it could trade below N1,000/$1 for the first time.
The naira’s fall after weeks of rising value is coming just as the latest figures from the Central Bank of Nigeria indicates that the external reserves dipped to $32.1bn on April 18, 2024 from $34.45bn on March 18, 2024 dropping by $2.35bn in just a month.
However, the CBN Governor, Yemi Cardoso, had at the just concluded International Monetary Fund/World Bank Spring Meeting defended his monetary policy saying that the recent slide was unrelated to defending the naira and that the apex bank’s intent was not to defend the naira. He said that the bank will refrain from intervening in the exchange unless unusual circumstances arose.
He said, “I want to make this as clear as possible, it is not in our intention to defend the naira. and as much I have read in the recent few days, some opinions with respect to what is happening with our reserves and if the central bank is defending the naira.”