Naira Depreciates by N30 Against Dollar Weekly Amid CBN Retail Dutch Auction System

The Naira has fallen by N30 against the dollar on a weekly basis, influenced by the Central Bank of Nigeria’s Retail Dutch Auction System, raising concerns about currency stability.

Last week, the Naira experienced a decline of N30 and N28.48 respectively in both the parallel and official foreign exchange markets due to activities relating to the Central Bank of Nigeria Retail Dutch Auction System.

On Friday, the Naira experienced a depreciation to N1645 against the dollar. This was in contrast to last week’s exchange rate of N1615 on Friday 23 August 2024.

Likewise, according to official foreign market trading data from FMDQ, the exchange rate decreased this Friday to N1598.56 per dollar compared to last week’s N1570.14.

Despite the interventions of Nigeria’s Central Bank, the weakening development has affected both foreign exchange markets.

In spite of the foreign exchange transaction turnover rising to $172.80 million on Friday, compared to Thursday’s record of $155.52 million, the Naira depreciated against the dollar over a seven-day period.

After a surge in dollar demand, CBN reintroduced the Retail Dutch Auction System weeks ago. This move is now followed by a development.