Nigeria’s official market witnessed a significant downturn on Tuesday as the country’s currency, the naira, plummeted to a record low against the dollar.
Thin trading conditions exacerbated the situation, leading to sharp fluctuations akin to levels observed in the unofficial parallel market, where the currency trades with greater flexibility.
London Stock Exchange Group (LSEG) data revealed that the naira tumbled to as low as N1,248 against the dollar during mid-day trading. This followed its opening rate of N927 earlier in the day.
Subsequently, the currency displayed some resilience, recovering to N845 later in the trading session.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), recently stated his intention to allow market forces to play a determining role in setting exchange rates.
He stressed the need for transparent and well-defined regulations governing market operations.
Source: Leadership
