The Nigerian naira witnessed a remarkable surge on Monday, reaching a peak of N2100 against the Pound Sterling in the parallel market, commonly referred to as the black market. This surge marked a substantial increase of 7.62%, with the currency strengthening by N160.00 compared to the previous day’s closing rate of N2,260.
This notable uptick comes amidst Nigeria’s heightened efforts to address the persistent depreciation of the naira. In response to the currency’s decline, the country has implemented various measures aimed at stabilizing its value.
These measures include intensified enforcement actions against informal foreign currency street traders and targeting a prominent cryptocurrency trading platform. Despite these efforts, challenges persist, highlighting the complexities of managing currency stability in the face of economic uncertainties.
In the parallel forex market, the naira also appreciated, trading at N1,650/$1, representing a 6.06% increase from the previous day’s close of N1,750. Against the Euro, the naira gained 5.95%, closing at N1850/EUR1 compared to N1960/EUR1 previously. Additionally, in the cryptocurrency market, where forex is traded using stablecoins, the naira settled at N1,637.30/$1 as of 12 pm.
In response to these developments, the National Security Adviser’s Office, led by Nuhu Ribadu, in collaboration with the Central Bank of Nigeria (CBN), has initiated a joint effort to combat forex speculation and address issues affecting the country’s economic stability.
According to Zakari Mijinyawa, a spokesperson for Ribadu’s office, the partnership involves coordinated actions with leading law enforcement agencies such as the Nigeria Police Force, the Economic and Financial Crimes Commission, the Nigeria Customs Service, and the Nigeria Financial Intelligence Unit.
Mijinyawa emphasized that the activities of speculators, both domestically and internationally, have significantly contributed to the naira’s depreciation, exacerbating inflation and economic instability in Nigeria.
As stakeholders monitor these developments closely, the Nigerian government continues to implement measures aimed at safeguarding the stability of the currency and promoting economic resilience in the face of ongoing challenges.
Credit: Nairametrics
