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The naira dropped to a four-month low at the official market, trading at 1,621.12 per dollar, down from 1,611.40 per dollar on Monday. This represents a 0.60 percent decline from the previous day’s rate.
Despite recent interventions by the Central Bank of Nigeria, which included selling dollars to authorized dealers and eligible Bureau De Change operators, the naira’s depreciation suggests that demand for foreign exchange continues to exceed supply.
Cordros Capital Limited recently noted in an update that the naira is expected to remain weak in the near term. This is attributed to tight market liquidity and the Central Bank’s limited capacity to make substantial interventions in the foreign exchange market.
