Naira Tumbles to N1,234/$ at Official Market; Speculator Resume Hoarding

The Nigerian Naira has experienced a significant tumble, falling to N1,234 per US dollar at the official market as speculators resume hoarding. This development has caught the attention of various news outlets and financial analysts, who are closely monitoring the situation.

Speculators have returned to the foreign exchange market, which is likely to have contributed to the recent devaluation of the Naira. This situation has also led to fluctuations in the parallel market, where the exchange rate is often different from the official rate.

The Central Bank of Nigeria (CBN) has been taking steps to stabilize the Naira and ensure a healthy foreign exchange market. However, the recent activity from speculators has posed a challenge to these efforts. The CBN has previously intervened in the foreign exchange market by selling dollars to BDCs, but the persistent demand and hoarding by speculators has made it difficult to maintain the Naira’s value.

In response to the Naira’s tumble, the CBN Governor, Olayemi Cardoso, has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value. Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira, but to maintain a market-driven exchange rate.

As Nigeria’s economy continues to navigate through these fluctuations, it remains to be seen how the CBN will respond to the speculative activities and what measures it will take to stabilize the Naira’s value in the foreign exchange market.