The naira continues its downward slide in the foreign exchange market, marking its third consecutive day of depreciation as the currency moves closer to N2,000 per dollar. On Thursday, September 5, 2024, the naira fell to N1,639.41 per dollar, compared to N1,625.88 on Wednesday, according to data from FMDQ.
This represents a depreciation of N13.53 against the dollar within 24 hours, reflecting the ongoing pressure on Nigeria’s currency.
In the parallel or black market, the naira also weakened, trading at N1,660 per dollar on Thursday, up by N25 from Wednesday’s rate of N1,640 per dollar. This widening gap between the official and black market rates brings the naira within N340 of the projected N2,000 per dollar mark.
The naira’s continued depreciation this week, with the exception of Monday when it traded at N1,585.77 per dollar, signals ongoing volatility in Nigeria’s foreign exchange market. These declines come as the Central Bank of Nigeria (CBN) implements the Retail Dutch Auction System (RDAS), a measure designed to manage currency demand and supply.
Analysts are concerned that if current trends persist, the naira may soon cross the N2,000 per dollar threshold, exacerbating inflation and economic challenges for businesses and consumers alike.
