The Nigerian naira sustained its downward trajectory against the US dollar, reaching 876/$ in the parallel market on Sunday, as reported by Bureau de Change (BDC) operators.

Just a week earlier, the local currency had traded at 820/$, reflecting the impact of unification of exchange rates by the Central Bank of Nigeria.

The continuous slide of the naira against the dollar is attributed to a combination of factors, including liquidity constraints, market speculations, and other challenges.

Financial experts, including Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, highlight the growing pressure on the foreign exchange market, emphasizing a dramatic 15% surge in money supply between May and June 2023.

This monetary expansion raises concerns about macroeconomic stability and calls for further investigation and measures to control future expansions.

While the naira showed a slight appreciation of 3.24% against the dollar at the Investor & Exporter forex window, the overall forex market continues to face challenges due to accumulated unmet foreign exchange demands and liquidity issues.