Nigerian Naira Slumps in Black Market: Trades at N1,635 Per Dollar Amid Rising Pressure
The Nigerian naira drops to N1,635 per dollar in the black market as demand pressures rise and CBN issues treasury bills to stabilize the economy.
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The local currency recently fell below the crucial N1,600 support level, reflecting renewed demand pressures and a widening supply gap that is contributing to its depreciation.
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Last weekend, the naira traded at N1,625 per dollar but has since slipped further.
Despite minor improvements in some economic conditions, the naira is struggling to maintain the critical N1,500 support level, indicating that it could depreciate further toward N1,800 per dollar if current trends continue.
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The Central Bank of Nigeria (CBN) is planning to issue N2.2 trillion in treasury bills in the fourth quarter of 2024 to stabilize the naira and manage liquidity in the financial market.
This substantial issuance is part of the CBN's strategy to combat inflation and provide better incentives in the Nigerian capital market, with interest rates on 364-day bills rising from around 15-18% at the end of 2023 to 21.49% in the first half of 2024.
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