Naira Plummets Amid Nationwide Hardship Protests

 

The Nigerian naira experienced a significant depreciation against the US dollar, concluding the week on a negative note amid ongoing nationwide hardship protests. According to FMDQ data, the naira fell sharply to N1,617.08 per dollar on Friday, down from N1,570.00 on Thursday, marking a loss of N47.08 in a single day.

Black Market Impact

In the parallel market, the naira also weakened, trading at N1,610 per dollar on Friday compared to N1,600 on Thursday. A Bureau De Change operator in Wuse Zone 4, Dayyabu Ashiru, commented on the situation: "We bought at N1,610 per dollar on Friday evening, up from N1,600 on Thursday, due to the Hardship Protest."

Weekly Performance

This depreciation has erased the two consecutive gains the naira recorded earlier in the week, on Wednesday and Thursday. On a week-on-week basis, the naira declined in both official and parallel foreign exchange markets, recording rates of N1,609.29 and N1,595 per dollar, respectively, last Friday. Despite several policy interventions by the Central Bank of Nigeria (CBN), the currency has struggled to stabilize.

Shrinking Gap Between Markets

Notably, the gap between the official and parallel FX markets has continued to narrow, standing at N7.08 on Friday. This development coincides with the hardship protests, which began on Thursday and continued into Friday, reflecting the economic pressures and public dissatisfaction.

Conclusion

The ongoing hardship protests and the resulting economic instability highlight the challenges facing the Nigerian economy. The depreciation of the naira, despite CBN’s efforts, underscores the need for sustained and effective economic policies to stabilize the currency and address the underlying issues driving the protests.