The Nigerian Naira faced another significant depreciation against the US Dollar on Tuesday, reaching a rate of N1,080/$ in the parallel market.

This marked a 4.85% decline when compared to the N1,030/$ rate observed on the previous day.

This marks the second consecutive day of the Naira’s decline, following a brief rally towards the end of the previous week when it was reported that the Central Bank of Nigeria was clearing its foreign exchange (FX) backlogs.

Since closing at N950/$ on Friday, the Naira has depreciated by 13.68%, losing N130 of its value against the US Dollar.

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Bureau De Change operators reported that it traded in the range of N1,060/$ to N1,095/$ on Tuesday. One operator named Kadri stated, “Dollar is N1,040 if you want to sell.

If you want to buy, it is N1,080.” Another operator, Awolu, mentioned, “Dollar is N1,095 if you want to buy. If I want to buy from you, it is N1,070.”

Muhammed added, “Dollar is N1,050 if you want to sell. It is N1,060 if you want to buy it.”

On the official market, the Naira also depreciated by 7.53%, reaching N869.91/$ on Tuesday, compared to N809.02/$ on Monday, as reported by the FMDQ OTC Securities Exchange.

The President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, attributed the Naira’s fall to the activities of speculators.

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He stated, “Speculators are always looking at elements of sustainability. Once they sense that it (the injection) is not continuous, they begin to react. It is the reaction of the market we are witnessing.”

The Nigerian presidency issued a warning to those hoarding foreign currencies, cautioning them against such practices.

Dr. Tope Fasua, a Special Adviser to the President on Economic Matters, revealed that the government is working on policies to strengthen the Naira.

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He emphasized that recent actions by the government in the FX market are set to continue, saying, “For those who are speculating and praying and wishing that the currency would become nonsense, I believe that the central bank is rolling out the policies and the government will shock some of them.”