Naira Hits New Lows Against Dollar as IMF Sounds Alarm to CBN on Nigeria’s Debt

On a tumultuous Wednesday, February 14, 2024, Nigerians faced yet another blow as the naira staggered against the dollar, breaching the daunting N1,500/$ milestone amidst a concerning decline in foreign exchange transactions.

Just a day earlier, hopes had flickered with a slight recovery, but the currency’s resilience proved fleeting as it succumbed to a 0.29% depreciation, closing at N1503/$ in the official market, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The unofficial FX market mirrored this downward spiral, witnessing a stark drop to N1,545/$ from the previous day’s close of N1,517/$. This unsettling development unfolds on the heels of the IMF’s call for urgent action from the Central Bank of Nigeria (CBN) to address the overdue FX backlog, emphasizing the critical role of restoring confidence in the currency’s stability.

The IMF’s insistence on settling the CBN’s lingering dollar obligations underscores the gravity of the situation, as it resonates with broader concerns about Nigeria’s economic trajectory.

Emphasizing the imperative for a robust reform agenda, the IMF underscores that addressing these challenges is pivotal not only for restoring faith in the apex bank but also for steering the nation toward a more promising medium-term outlook.

Against a backdrop of uncertainty and fluctuation, the trajectory of the naira remains a barometer of Nigeria’s economic health, with each fluctuation shaping the nation’s path forward amidst pressing calls for decisive action and structural reforms.