BY FESTUS OKOROMADU
The Nigerian currency, Naira has declined to historic low on the parallel market exchanging for N998/$.
This is even as the Naira continues to face significant depreciation pressures against the US dollar at the open market, with forecasts suggesting it may surpass the milestone of N1000/$ in the parallel market before the close of September.
Financial analysts have attributed this alarming trend to a combination of factors such as dwindling foreign reserves, increased demand for foreign currency, and economic challenges.
However, at the official market, the Naira gained strength last week appreciating by 1.21 percent week-on-week to close at N747.76/$1 as the CBN supplied forex to deposit money banks and the market to further shore up the value of the local currency as part of the interventions by the apex bank.
Meanwhile, at the parallel market, the Naira depreciated by 4.50 percent week-on-week to a historic low of N998/$1. This depreciation was driven by the continued search for the dollar by forex users in alternative forex markets, given the limited supply from the apex bank.
This development is coming as Olayemi Michael Cardoso formally resumed as acting Governor of the Central Bank of Nigeria, following his recent nomination by President Bola Tinubu pending approval by the Senate.
The apex bank in a statement signed by the Director of Corporate Communications, Isa Abdulmumin, said his resumption followed the resignation of Godwin Emefiele as Governor of the CBN.
Similarly, the Deputy-Governors designate have also assumed duty, in acting capacities, sequel to the formal resignation of Mr. Folashodun Shonubi, Mrs. Aishah Ahmad, Mr. Edward Lametek Adamu, and Dr. Kingsley Obiora as Deputy Governors of the CBN.
Cardoso and his colleagues agreed to the relevant oaths of office at a brief ceremony held at the Bank’s Head Office in Abuja and have settled down to the task of administering monetary and financial sector policies of the Federal Government.
As an Economic and Development Policy Advisor, Financial Sector Leader, former Chairman Citi Nigeria and Commissioner for Economic Planning and Budget in Lagos, Cardoso brings over three decades of managerial experience on board.
