LAGOS, Nigeria (VOICE OF NAIJA) – The naira has jumped up by 9.8 per cent increase against the the United States dollar to reach N1,275/$ over the weekend.
The new rate shows an increase in the currency strength when compared to last Friday, when traded at N1,420/$ at the parallel market.
The Senate through its Committee on Finance, on Sunday, said there need to be a proactive measures to safeguard the stability and resilience of our currency after recent weaken performance of the naira.
“Currency traders at the popular Wuse Zone 4 market, on Sunday, blamed trading uncertainty of the market as reason for the fluctuations in the exchange rate,” Punch reported.
They added that the government must either to choose to increase the currency value or devalue for market stability.
The operators did not provide a selling rate for Sunday, citing the absence of trading activity.
A trader, Malam Yahu Ibrahim, said operators were being mindful and calculative based on the naira instability.
READ ALSO: Senate Committee Expresses Fear As Naira Further Falls
He said, “We take risks against ourselves every day because I don’t know how they are doing it, the naira is just swinging. “If the government wants to bring down the dollar totally, they should do it or if they want the naira to fall, they should do it and not allow it to fluctuate. It is killing businesses.”
“We are not even seeing the effect of the CBN dollar sale to BDCs, we are not seeing any effect.”
Senate Reaction On Sunday
Meanwhile, the Senate Committee on Finance, has expressed concerns in recent decline of the naira despite numerous policies employed by the apex bank to rescue the currency.
The naira continued to weaken against the US dollar with the official window, ending at 1,309.88/$ and N1,420/$ at parallel market on Thursday, April 25.
In a statement issued on Sunday, the Chairman of the Committee, Senator Sani Musa ( APC Niger East), said there was an urgent need for concerted efforts at tackling the instability and continuous depreciation of the Naira.
He said, “The recent depreciation of the Naira underscores the need for proactive measures to safeguard the stability and resilience of our currency.
The Nigerian economy is facing significant challenges, exacerbated by both internal and external factors.
“Despite efforts to stabilize and bolster economic growth, the numerous initiatives and bold but necessary steps and policy decisions taken by President Bola Tinubu, the persistent depreciation of the Naira against major foreign currencies has become a pressing concern.”
“The recent depreciation of the Naira underscores the need for proactive measures to safeguard the stability and resilience of our currency,” the Senate finance chairman lamented.
READ ALSO: The Naira’s Plunge: Can Nigeria Expect a Respite in Price Inflation for Goods and Commodities?
Senator Musa added, “The Senate Committee on Finance is closely monitoring the situation and is committed to working collaboratively with relevant stakeholders to implement effective policies and strategies.
“It is imperative that we address the root causes of Naira depreciation, including but not limited to fluctuations in global oil prices, fiscal deficits, and structural imbalances in the economy.
“The Senate Committee on Finance is exploring a range of policy options to mitigate the impact of Naira depreciation and foster economic stability.”
“This includes robust oversight of fiscal policies, engagement with key stakeholders, and the formulation of targeted interventions to support key sectors of the economy.
“It is also the hope of the committee that our economic managers will adhere strictly to the norms and standards set by this administration to ensure that we achieve the desired outcomes in taking Nigeria to its economic growth and prosperity.
“As we navigate these uncertain times, I urge all Nigerians to remain vigilant and resilient. Together, we can overcome the challenges facing our economy and chart a path towards prosperity for all”
Punch