The naira witnessed a 4.72% decline, closing at N1035.12/$ on the official Investor and Exporter foreign exchange window on Wednesday, according to data from the FMDQ Securities Exchange.

This marks a consecutive decline in the first two trading days of 2024, making it the third time the national currency has closed above N1,000/$ since the removal of the Central Bank of Nigeria’s rate cap.

Beginning the day at N932.67/$, the naira reached an intraday high of N1,224/$ and a low of N700/$ before settling at N1035.12/$ at the close of trading.

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The total forex turnover for the day amounted to $85.68 million.

Despite the Federal Government’s recent receipt of a $2.25 billion foreign exchange support facility from the African Import-Export Bank, the naira continues to face challenges in the foreign exchange market.

The first tranche of the $3.3 billion facility, aimed at addressing FX shortages in the economy, was highlighted by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.

The World Bank’s December Nigeria Development Update emphasized the naira’s poor performance, noting a 41% depreciation against the US dollar in the official market and a 30% decline in the parallel market in 2023.

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The report suggests that increased FX supply and clarity on the Central Bank’s net reserve position could contribute to stability in the official market.

The World Bank recommended further monetary policy tightening to support the naira’s value.