Why Naira falls against US Dollar in Forex Market




It is no longer news that in the past 48 hours, Nigeria’s Naira crashed by 42 per cent against the US dollar at the foreign exchange.

According to FMDQ data Naira further depreciated against the to N1,482.57 per US Dollar on Tuesday from N1,348.63 on Monday.

Accordingly, a combined figured showed that Naira has fallen by 42 per cent from Monday to Tuesday.

Similarly, the exchange rate depreciated by 1.4 per cent at the parallel market, where majority of Nigerians source for forex, quoted at N1,470 per US dollar.

Interestingly, this is first Naira is quoting at higher at official market when compared with the parallel market since the floating of the country’s currency since June 14 last year.

The development comes despite the recent release of over $500 million US dollar by the Central Bank of Nigeria to clear forex backlog.

Meanwhile, Financial Experts have been lack of revenue from crude oil sales on the continued forex crisis.

Muda Yusuf, the Director of Centre for the Promotion of Private Enterprise urged the government to ramp up crude oil production and boost accountability in the product’s sale.