Business

Naira Sees Significant Drop Against Dollar 24 Hours After Tinubu’s Anniversary

Published by Tope Fakinlede on May 31st, 2024.

Naira Sees Significant Drop Against Dollar 24 Hours After Tinubu’s Anniversary

Just one day after President Bola Ahmed Tinubu’s first anniversary, the Naira experienced a significant depreciation against the dollar in the foreign exchange market.

According to FMDQ data, the Naira fell to ₦1484.75 per dollar on Thursday, down from ₦1329.65 on Wednesday. This marks a loss of ₦155.1 per dollar within 24 hours.

In the parallel market, the Naira also declined, trading at ₦1490 per dollar on Thursday compared to ₦1480 the previous day.

This decline coincided with a reduction in the turnover of foreign exchange transactions, which dropped to $235.41 million on Thursday from $328 million on Tuesday. The last time the Naira experienced a similar depreciation in both the official and parallel markets was on May 23, 2024, following the Central Bank of Nigeria’s (CBN) new guidelines for Bureau De Change operators.

Since mid-April, the Naira has been fluctuating against the dollar despite various interventions by the CBN. Olayemi Cardoso, the CBN governor, attributed this volatility to seasonal fluctuations during the last 295th Monetary Policy Committee meeting.

Cardoso also clarified that the CBN has not revoked the licenses of Moniepoint, Opay, and other fintech companies.