By Sodiq Adelakun
The Nigerian naira experienced a depreciation against the US dollar on Monday, as it was exchanged at a rate of N747.87 at the Investors and Exporters window.
This marked a drop of 1.01 per cent compared to the previous exchange rate of N740.38 on September 1st. The open indicative rate closed at N772.06 to the dollar on Monday.
On the other hand, the naira also saw a low of N730 to the dollar within the same trading period.
In total, a volume of $74.64 million was traded at the investors and exporters window on Monday.
The depreciation of the naira against the dollar can have various implications for the Nigerian economy.
However, the exchange rate between the naira and the dollar is influenced by various factors, including supply and demand dynamics in the foreign exchange market, as well as economic and political developments both domestically and internationally.
The CBN has implemented various measures in the past to stabilise the naira and manage its exchange rate. These measures have included interventions in the foreign exchange market, restrictions on access to foreign currency, and the introduction of multiple exchange rates.
In the same vein, the depreciation of the naira against the dollar on Monday reflects the ongoing challenges faced by the Nigerian economy, including low oil prices, inflationary pressures.
