The naira continued its decline against the dollar on Monday, trading at ₦1,540.57 in the official market as demand for foreign exchange outstripped supply.
Despite the Central Bank of Nigeria (CBN) sustaining its interventions to stabilize the currency, the naira depreciated by ₦18.95 last week, closing at ₦1,536.89 before weakening further at the start of the new week.
Checks by Daily Trust revealed that the CBN sold $92.10 million toward the end of last week, bringing total FX sales to $230.90 million, amid fluctuations in external reserves.
Meanwhile, at the parallel market in Lagos, the dollar was bought at ₦1,560 and sold for ₦1,570 on Monday.
Experts warn that the rising demand for forex, combined with limited supply, poses a serious risk to the naira’s stability. Dr. Marcel Okeke, an economist, told Daily Trust that the recent decision by Dangote Refinery to sell petroleum products exclusively in dollars could further increase demand for foreign exchange, worsening the depreciation.
“With marketers now scrambling for the limited supply of dollars to import petroleum products, the forex demand will rise, which may push the exchange rate even higher,” he said.
