Naira Depreciates to N1,495.60 Against Dollar
The Naira further weakened against the U.S. dollar on Monday, February 3, 2025, closing at N1,495.60 in the official market. According to data from the FMDQ Securities Exchange, the local currency lost N20.82, representing a 1.4% decline from the previous trading day on Friday, January 31, when it stood at N1,474.78 per dollar.
At the Investors and Exporters (I&E) Forex window, the naira fluctuated between a high of N1,497.50 and a low of N1,470.00 during Monday’s trading session.
Since December 2024, the naira had demonstrated relative stability, attributed to ongoing reforms by the Central Bank of Nigeria (CBN) aimed at enhancing transparency in the foreign exchange market. These measures have also strengthened the operational framework of Bureau De Change (BDC) operators, who play a critical role in the retail segment of the FX market.
In a bid to further support the BDC sector, the CBN announced on Tuesday, January 28, 2025, the approval of waivers on the 2025 annual license renewal fees for all existing BDC operators. Additionally, on Monday, February 3, 2025, the apex bank extended the deadline for the sale of dollars to BDCs from the initial cutoff date of January 31 to May 30.
The naira’s depreciation comes amid ongoing economic adjustments and regulatory interventions. While the CBN’s measures have provided some level of market stability, currency fluctuations continue to reflect prevailing macroeconomic challenges. Analysts suggest that further policy interventions may be required to sustain the currency’s value and restore investor confidence in the forex market.
As Nigeria grapples with foreign exchange volatility, stakeholders will be closely monitoring the impact of the CBN’s initiatives on the currency’s performance in the coming months.
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Content Credit| Agbetan Bisola
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