The Naira experienced a decline against the US dollar in the foreign exchange markets on Friday, coinciding with the closure of corporate businesses for the Christmas celebration in Nigeria.
According to official data from FMDQ, the Nigerian Naira weakened by 2.71 per cent against the US Dollar, reaching N885.88/$1. This represented a depreciation of N23.97 or 2.71 per cent compared to its Thursday closing rate of N861.91.
Similarly, the depreciation in the parallel forex market, where forex is unofficially sold. The exchange rate in the parallel market dropped by 0.16 per cent, quoted at N1230/$1, while peer-to-peer traders quoted around N1163.35/$1 on Friday.
These developments occurred alongside a 22 per cent reduction in forex turnover to $92.16 million.
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The implication for Nigerians during the Christmas season is that more money will be spent on Dollar-related purchases.
Since the introduction of FX reforms by the apex bank on June 14, 2023, the Naira has been subject to fluctuations in the forex market. However, Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, recently provided reassurance to Nigerians, stating that the Naira is expected to strengthen in the FX market in 2024.