Naira Falls to Lowest in History in Official Market, Surpasses Black Market at N1,460 Per Dollar

Naira Falls to Lowest in History in Official Market, Surpasses Black Market at N1,460 Per Dollar

  • The naira fell to its lowest in history at the official market on Tuesday, January 30, 2024
  • The naira exchanged at N1,460 per dollar in the official market, making it the highest fall in history
  • The official market rate closed higher than the parallel market, which closed at N1,460 per dollar

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The naira plunged to its lowest in the official foreign exchange market on Tuesday, January 31, 2024, closing higher than the unofficial parallel market.

The development means that the parallel market stopped declining and sustained the rate it exchanged the day before at the same rate of N1,460 per dollar.

Naira falls, CBN pays foreign airlines
Naira collapses in the official foreign exchange market Credit: Bloomberg/Contributor
Source: Getty Images

In the official Nigeria Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,482.57 compared to N1,348.62, showing a loss of N133.95 or 9.94% decline.

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Naira plunges to lowest despite high forex turnover

According to data from the FMDQ, daily forex turnover stood at $72.33 million compared to the $64.29 million recorded on Monday, January 29, 2024, a 12.50% rise.

The naira traded at a high of N1,531 per dollar and a low of N789 per dollar.

The naira's depreciation came the same day the Central Bank of Nigeria (CBN) said it cleared all trapped funds belonging to foreign airlines with the release of $64.44 million.

CBN disburse funds to foreign airlines

ThisDay reports that the International Air Transport Association (IATA) insisted that Nigeria still owes foreign airlines about $700 million.

The apex bank stated that the disbursement to the airlines concluded all outstanding verified settlements to the operators.

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Naira loses N456/$ to hit new low across all markets, defies CBN’s forex injection

Earlier in January, CBN announced the disbursement of $61.64 million to foreign airlines via commercial banks.

Analysts say the naira's fall is a mixed blessing

Financial analyst and social commentator Dan Kanu revealed that the fall of the naira is as positive as unfavorable.

He said the official exchange rate is nearing parity with the parallel markets, which is what the unification of forex windows was meant to achieve.

"We are seeing the rallying of both forex markets. This signifies a positive change because the difference would be eliminated.
"On the flip side, it means that the apex bank has much work to do to rein in the fall of the naira. The fact that the naira did not respond to the injection of forex by CBN into various sectors did not help the naira, which means it goes beyond the injection of FX. It means earning more forex, working to restore investors' confidence, and attracting the right FDI."

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"Prices of things will be higher": Manufacturers warn as naira falls to N1,500/$ in parallel market

Naira falls to lowest 24 hours after EFCC, BDC officials agree to spoil black market reported the Nigerian foreign exchange market saw a historic decline in the value of the naira, which reached an unrivaled intraday high of N1,399 per dollar at the official market on Thursday, January 25, 2024.

Data from FMDQ show a significant 6.15% drop compared to the N1,313 rate observed during the intraday trading a day earlier.

Also, the intraday low saw a significant 11.28% drop as the dollar was quoted at N789 on Thursday, January 25, 2023, in contrast to N700 on Wednesday, January 24, 2024.


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Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner.

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