The Naira’s struggle against the US dollar is placing added pressure on the new Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, and the four deputy governors. This challenge is particularly pronounced in various foreign exchange markets, with the most severe situation occurring in unofficial markets where the Naira is inching closer to the N1000 per dollar mark.
Specifically, the Naira is facing difficulties in the Investors and Exporters (I&E), black market, and Peer-to-Peer (P2P) segments of the foreign exchange market. On Tuesday, September 19, 2023, the Naira traded at N971/$1 in the P2P window, which is frequently used by cryptocurrency traders. This rate remained unchanged from the previous Monday but marked a N3 depreciation compared to the exchange rate of N968/$1 recorded the previous Friday.
Similarly, in the black market, the Naira continued to lose value, with an exchange rate of N964/$1, compared to the rate of N960/$1 observed the previous Friday.
In the Investors and Exporters Window, the Naira experienced a significant devaluation, dropping by 2.26 percent or N17.07 against the dollar to settle at N773.98/$1, as opposed to the N756.91/$1 rate seen the previous Friday.
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Data from the Central Bank of Nigeria also revealed a depreciation of the Naira against the Pound Sterling in the official market, with the rate shifting from N954.77/£1 to N961.41/£1, representing a N6.64 decrease.
Additionally, the Naira struggled against the Euro, depreciating by N8.57 to trade at N828.58/€1, compared to the N820.01/€1 rate recorded the previous Friday.
Meanwhile, it is worth noting that Dr. Olayemi Michael Cardoso has been nominated by President Tinubu as the new CBN Governor, following the suspension of the embattled Godwin Emefiele several months ago. Cardoso’s appointment is for a five-year term and is subject to screening and confirmation by the Nigerian Senate, further adding to the challenges the new leadership will face in managing the Naira’s value in the foreign exchange market.