- There was no respite for Nigerian currency against the US dollar at the official foreign exchange markets
- Just hours after recording N31 gain, the naira reversed and dropped by N286 against the dollar
- The expected dollar investment from the Kingdom of Saudi Arabia to ease pressure is now more important as supply continues to be a problem
Dave Ibemere has over a decade of experience covering Business and the Economy.
It is getting worse for the naira at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Central Bank of Nigeria approved official market.
Just hours after recording a massive gain of N31, the naira crashed to its lowest level against the United States dollar at NAFEM.
According to Reuters, naira was exchanging at N1,105/$ to the US dollar on the official market on Thursday, November 16, 2023.
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This represents a N230 drop in value in hours compared to the N830 to the dollar it closed on Wednesday.
The latest exchange rate is the lowest ever the naira has dropped against the US dollar in the official market after crossing the N1,000 mark.
Naira to dollar exchange rate at the official market
However, it's the same story for the naira in the Peer-to-Peer (P2P) segment of the foreign exchange market, mostly used by fintech.
Checks by Legit.ng showed that as of 3 pm on Thursday, the naira had depreciated to N1,115 against the dollar, compared to Wednesday's closing rate of N1,113/$1.
In the parallel market, also called the black market, BusinessDay reports that a dollar was trading in the afternoon at N1,135/$, the same rate it closed on Wednesday.
Naira against other currencies
There is no updated figure from the Central Bank of Nigeria(CBN) for the naira against the British Pound and Euro at the time of writing.
On Wednesday, CBN data showed that the naira weakened against the Pound Sterling in the official market by N12.07 to close at N1,047.84/£1 compared with Tuesday's traded rate of N1,035.77/£1.
While Naira against the Euro depreciated by N8.14 to finish at N911.27/€1 on Wednesday versus N903.13/€1 on Tuesday.
Nigeria Customs sets new exchange rate to clear imported goods
The new rates were intended to reflect the depreciation of the naira against the dollar across the foreign exchange markets.
With the new rate, the cost of imported goods will increase nationwide.
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