Naira Crashes to Lowest Level in History Against US Dollar at Official Market

Naira Crashes to Lowest Level in History Against US Dollar at Official Market

  • The value of the Naira has crashed to its lowest level against the US dollar in the foreign exchange markets
  • It is getting worse at the official market as the future looks dimmer for the Naira despite the promises made by the FG
  • The CBN is still expecting an inflow of $10 billion to pump into the foreign exchange market to reduce the pressure on naira

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

Naira fell to its lowest level in history against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market) on Thursday, November 9, 2023.

Data obtained by Legit.ng from FMDQ securities, where Naira is officially traded, showed that Nigerian currency closed Thursday trading at N996.75 a dollar.

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No more N1k/$: Naira sets new exchange rate record after falling by N286 in hours against US dollar

Naira to dollar
Naira free fall continues against US dollar Photo credit: Benson Ibeabuchi
Source: Getty Images

This represents a massive depreciation of 160.14 or 19.14% compared to the exchange rate 836.61 recorded the previous day(Wednesday).

Naira to dollar at unofficial market

It was, however, a different story for the Naira at the parallel market segments of the foreign exchange (FX) market on Thursday.

BusinessDay reports that the Naira on Thursday gained 1.75 per cent on the parallel market, also known as the black market.

During the intraday trading on Thursday, the dollar was quoted at N1,120 compared to N1,140 mentioned on the previous day on the black market.

But it was not good news for the Naira in the P2P window, mostly quoted by fintech and cryptocurrency traders.

Checks showed that the Naira depreciated against the dollar to N1,079.2, higher than the N1,049/$1 reported on Wednesday.

Read also

No more N1,114/$: Naira falls again against US dollar across all foreign exchange market

Tinubu's government make promises

Following sentiments around the government's plan to increase dollar liquidity, the Naira improved against the dollar last week.

This made the Special Adviser to the President on Economic Matters, Dr Tope Fasua, to boast the measure will help the Naira achieve N500-N600/$1 in the future.

With the latest exchange rate, the Naira will need to recover at least N400 of its value to achieve the government's target.

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 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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