After four consecutive days of rising, the naira recorded its first loss on the official foreign exchange (FX) market on Tuesday.

The drop in the naira came after the Central Bank of Nigeria (CBN) started selling dollars to banks. According to FMDQ data, the naira lost 0.70% after trading on Tuesday, while the dollar was quoted at N 1,582.09 against N 1,570.99 listed on Monday on the Nigerian Autonomous Foreign Exchange Market (NAFEM). The local currency appreciated by N2 for one dollar to close at N1 598/$ on Tuesday against N1 600 closed on Monday on the parallel market, also known as the black market. According to Bala Moh'd Bello, a member of the Monetary Policy Committee (MPC), “the central bank has made considerable efforts to stabilize the foreign exchange market, which has led to an increase in foreign portfolio investment flows and a reduction in exchange rate volatility. In addition to the measures currently being taken by the Bank, medium and long-term strategies are being studied to ensure that the exchange rate stabilizes at a level of equilibrium determined by the market.”