The Naira declined considerably versus the US dollar on the official market on Tuesday, according to market prices published on the FMDQ website, despite the fact that the dollar index fell sharply.
On Tuesday, the naira began at N769.66 to $1 and finished at N775.34 to $1 in the official market. The rate marks a 0.42% decrease from the previous session’s rate of 772.12 naira to the dollar.
The naira continued to fall on Tuesday as the dollar traded for 920–925 naira to $1 on the black market in Africa’s biggest economy. Dealers buy from willing sellers for N/$915 and sell to them for N/$920-925.
The dollar index experienced its worst day in a month and a half on Tuesday, as speculators trimmed their positions as JOLTS job postings plummeted to a two-and-a-half-year low.
The Nigerian naira has been the worst-performing African currency this year, plunging more than 40% versus the dollar as the country takes drastic measures to improve its financial situation, including cutting fuel subsidies and revamping the exchange system, which has been highly criticized.
The central bank changed the country’s foreign exchange policy in June, depreciating the naira.
President Bola Tinubu wants to revitalize the economy by eliminating fuel subsidies that have been in place since the 1970s and redirecting funds to increased investment in education, agriculture, and job development.
