The Naira experienced a marginal depreciation against the US Dollar in the foreign exchange market, marking the first decline since March 2024.
According to data from FMDQ, the Naira dipped to N1,148.14 per Dollar on Tuesday, a slight decrease from N1,136.04 recorded on Monday, representing a 1 percent depreciation.
Similarly, in the parallel market, the Naira fell to N1,100 per Dollar from N1,050 per Dollar on Monday, reflecting a N50 depreciation.
This shift contrasts with the Naira’s recent trend of stability and steady appreciation, attributed in part to the efforts of the Central Bank of Nigeria (CBN) to defend the currency.
In fact, the Naira was recognized as the best-performing currency in April by Goldman Sachs.
Despite interventions by the CBN, the country’s foreign exchange reserves have declined, standing at $32.29 billion on April 15, 2024, down from $34.45 billion on March 18.
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The decrease in reserves coincides with a drop in crude oil revenue, with Nigeria’s crude oil production slipping to 1.23 million barrels per day in March from 1.32 million barrels per day in February.
In response to the challenges, the Nigerian government has pledged to increase oil production to bolster revenue in the coming months.
