Tough Christmas Ahead as Naira Crashes to All-Time Low of N980 Per Dollar

Tough Christmas Ahead as Naira Crashes to All-Time Low of N980 Per Dollar

  • The naira fell to its lowest at the black market on Wednesday, September 20, 2023
  • The local currency fell to N980 to a dollar in the black market as demands surged
  • Local currency dealers revealed that importers are in a frantic search for the dollar to bring in goods for Christmas

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The Nigerian currency, the naira, has hit a record low of N980 per dollar amid rising demand for dollars at the black market.

The naira fell as demand for dollars by importers and international students surged.

Naira crash, CBN, BDCs
New CBN governor, Yemi Cardoso faced with tough times as the naira crashes Credit: Andersen Ross Photography Inc
Source: Getty Images

The naira has lost N315 against the USD since this year

The local currency depreciated by 0.34% at the Investors and Exporters (I&E) window, trading at N776.60 per dollar on Tuesday, September 19, 2023, as against the N773.98 traded on Monday, September 18, 2023, according to data from FMDQ.

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CBN new governor, Yemi Cardoso job gets tougher as Naira nears N1000/$ exchange rate

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Every year, the Nigerian currency has fallen by 68.46% or N315.60 to N776.60 per dollar from N461 per dollar quoted earlier in the year.

On Tuesday, September 19, 2023, willing buyers and willing sellers bid a high of N799.90 per dollar and a low of N720 per dollar on the FX market.

The daily Forex turnover closed at $71.01 million on Tuesday, September 19, 2023.

Importers search frantically for the dollar

According to a Bloomberg report, the Nigerian currency fell to an all-time low due to a decline in foreign currency supply by the Central Bank of Nigeria.

On the black market, the local currency is 20% weaker than the official rate of N776.60 per dollar.

Local dealers report that importers are everywhere looking for dollars to bring in goods for Christmas, as they are not getting them at the banks.

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Currency dealers demand changes as CBN threatens heavy sanctions

The naira crash comes as Bureau de Change operators demand greater autonomy, mergers, and increased FX supply from the apex bank.

The currency dealers also request that the CBN allow them to digitize their operations for smooth FX processing.

The apex bank has warned the operators of heavy sanctions if they fail to comply with its guidelines.

The outgone Acting Governor of the CBN, Folashodun Shonubi, blamed Forex speculators for the continuous crash of the naira and promised to put measures in place to strengthen the naira.

Meanwhile, Uchechukwu Ogor, a banker and foreign policy commentator, has said that there are indications that the naira will fall to N1,000 per dollar before Christmas.

“The indicators are clear. The naira is headed for N1,000 per dollar on or before Christmas. I also predict it will soon crash to N850 at the I&E window.”

Read also

Naira nears N800/$ at official market as CBN’s authorised dealers raise dollar rates

Ogor stated there is a vast forex scarcity in the banks because of reduced inflow, as Nigeria is not exporting other products besides crude oil.

CBN new Governor, Yemi Cardoso job gets tougher as naira nears N1000/$ exchange rate

Legit.ng reported that the Naira against the US dollar continued to struggle in the Investors and Exporters (I&E), black market, and the Peer-to-Peer (P2P) segments of the foreign exchange (FX) market.

Checks by Legit.ng show that the naira in the P2P window, mostly used by cryptocurrency traders on Tuesday, September 19, 2023, exchanged to the dollar at N971/$1.

Tuesday's exchange rate is the same rate the dollar opened the week at P2P on Monday but an N3 worst compared to Friday's exchange rate of N968/$1.

Source: Legit.ng

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