No more N900/$: Naira Falls Against Dollar, Pound, Euro at Official and Black Markets

No more N900/$: Naira Falls Against Dollar, Pound, Euro at Official and Black Markets

  • Nigerian currency value dropped further against the US dollar across all foreign exchange markets
  • This comes a few days after the CBN decision to clear forex backlogs helped create a positive sentiment for the naira
  • The federal government is aiming to achieve an exchange rate of between N500 to N600 for one US dollar soon

Dave Ibemere has over a decade of experience covering tech, energy, stocks, investments, and the economy

The naira depreciated further against the US Dollar in both the official and unofficial foreign exchange markets on Wednesday, November 7, 2023.

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Central Bank of Nigeria recognised market, the naira closed at an exchange rate of N874.71 to the US dollar.

Naira to dollar exchange rate
A customer exchanges Nigerian 1000 Naira banknotes for US dollar. Photo credit: Benson Ibeabuchi
Source: Getty Images

This represents a 9.8% drop in value for the naira compared to the 798.19 closing rate achieved on Tuesday, November 7.

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The depreciation of the naira occurred despite an improvement in foreign exchange supply.

Data from the FMDQ Securities Exchange showed that forex transactions worth $113.52 million were achieved on Wednesday, which is higher than the $70.92 million recorded on Tuesday.

Naira to dollar exchange rate at unofficial market

It was a similar story for the naira at the parallel and Peer-to-Peer (P2P) unofficial foreign exchange markets.

In the P2P segment of the forex market, the local currency declined to as high as N1,099 against the US dollar.

This represents a massive drop from the N1,015/$1 it closed on Tuesday.

The same scenario unfolded in the parallel market window, as reported by Bloomberg.

Read also

After pumping $7 billion to clear forex backlogs, naira crashes again in official market

The value of the naira slumped by approximately 7% to 1,150 naira per dollar on Wednesday, down from 1,070 the previous day.

Naira against pound, euro

Naira also fell against the Pound Sterling and the Euro at the official market CBN data shows.

The naira exchanged against the Pound Sterling at N1,054./£1 versus the previous day. While against the Euro, the local currency exchanges at N917.6/£1.

CBN explains decision to lift forex ban on 43 items, IMF agrees

The CBN, in an earlier report, defended its decision to raise foreign exchange restrictions on 43 items after eight years

According to new CBN directives, importers of things such as toothpicks, cement, and rice will now have full access to purchase dollars at official markets

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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