The Naira has remained unstable over the past few months, dropping to N956/$ as revealed by the official Investor and Exporter forex window on Thursday.
News about Nigeria gathered that the Investor and Exporter forex window also noted that the dollar supply was equally affected, with the supply falling by 46.77 per cent.
According to data from the FMDQ Securities Exchange, this decline represents a 13.78 per cent drop from the N840.53/$ that the Naira reportedly closed at in trading on Wednesday.
The data also reveals that the turnover of dollars traded in the market fell to $105.50 million from $198.21 million on Wednesday.
The World Bank had earlier disclosed that the Naira is among the worst-performing currencies in the world, adding that it has lost about 40 per cent of its value since June.
It further noted that despite the efforts of the Central Bank to clear the backlog of foreign exchange forward contracts, the Naira has remained unstable.
It is worth mentioning that the Naira, which began trading at N800.90/$, hit a high of N1136/$ and N615/$ before finally closing trading at N956.33/$.
However, the research and analysis division of the Economist Group, an affiliate of the Economic Intelligence Unit, disclosed that the Central Bank of Nigeria (CBN) does not possess the necessary capacity to clear the backlog of foreign exchange orders. It maintains that doing so would only put additional pressure on the Naira.
Furthermore, it revealed that skyrocketing inflation and continued spread within the parallel market will leave the exchange rate regime unstable, resulting in periodic devaluation.
