The Nigerian naira has resumed its depreciation against the US dollar across both the official and parallel foreign exchange markets after a brief period of appreciation.
According to data from the Central Bank of Nigeria (CBN), the naira slightly weakened against the dollar on Monday, trading at N1,532.54 compared to N1,532.34 recorded on Friday last week. This represents a marginal depreciation of N0.20 in the official market.
The parallel market (commonly known as the black market) recorded a more significant drop, with the naira falling to N1,540 per dollar on Monday from N1,350 traded last week.
This latest development comes after the naira had shown signs of recovery, appreciating across the foreign exchange market last Friday. The renewed pressure on the naira coincides with Nigeria's recent economic milestone of rebasing its Gross Domestic Product (GDP) to N372.8 trillion in 2024.
The rebasing of Nigeria's GDP represents a significant update to how the country measures its economic output, providing a more accurate reflection of the current structure and size of the economy. Despite this positive economic indicator, the naira continues to face challenges in the foreign exchange market.
The fluctuation in the naira's value comes amid ongoing efforts by monetary authorities to stabilize the currency. Earlier, the Presidency had claimed that naira harmonization had been achieved, suggesting progress in aligning the official and parallel market rates.
Financial experts continue to monitor these developments closely, as currency stability remains crucial for Nigeria's economic recovery and growth prospects.
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