The Nigerian currency has once again experienced a significant drop in value against the US dollar in the foreign exchange market.

Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) reveals that the Naira depreciated by over N90 against the US dollar, signaling further economic instability.

The Naira’s value on the official market fell by approximately 6%, or N94.19, closing at N1,665.50/$1 on Friday, February 23. This stark depreciation contrasts with the N1,571.31/$1 rate recorded the previous day.

The downturn is attributed to a shortage in the supply of foreign exchange, with the value of forex transactions decreasing by over 20.9%, dropping to $151.92 million from the $192.25 million traded the previous day.

Meanwhile, in the unofficial market, the Naira saw a slight improvement, gaining N32 to trade at N1,705/$1 in the Peer-to-Peer (P2P) market. However, the currency’s performance in the black market remained subdued, closing at N1,800/$1 compared to N1,895/$1 in the preceding trading session.

As the Central Bank of Nigeria (CBN) convenes to address the currency’s volatility, forex traders anticipate new policies that could potentially stabilize the market and bolster the Naira’s performance in the coming week.