- Nigerian currency, the Naira, recorded a mixed trading performance against the United States dollar
- At the official market, the Naira continued its depreciation, while in the black market, it improved in value
- The Nigerian foreign exchange market is still battling liquidity challenges despite promises
Dave Ibemere has over a decade of experience covering Business and the Economy
The Naira lost more value against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, November 17, 2023.
Data from FMDQ securities, where the Naira is officially traded, showed that the Naira closed trading on Thursday at N841.14/$1.
This was N22.15 or 2.71% loss against the dollar compared to Wednesday's exchange rate of N818.99/$1.
The Naira achieved the closing rate after falling to an all-time low level of N1.140/$1 during the trading session.
Meanwhile, against other foreign currencies, the Naira gained N18.10 against the Pound Sterling to sell at N1,029.74/£1 versus N1,047.84/£1, data from the Central Bank of Nigeria(CBN) showed.
There was also an improvement for the Naira against the Euro by N12.82 to close at N898.45/€1 versus N911.27/€1.
Naira to dollar at unofficial market
It was, however, a different story for the Naira at the parallel market popularly called the black market on Thursday.
BusinessDay reports that the Naira appreciated against the dollar, gaining 0.88 per cent to N1,125/$ after steadying at N1,135 for three days.
In the Peer-2-Peer (P2P) window, the local currency depreciated against the dollar by N1 to settle at N1,114/$1 compared with the previous day's N1,113/$1.
CBN governor Cardoso
There are expectations that the CBN will soon have enough dollars to meet local demands for forex and ease pressure on Naira.
Yemi Cardoso, who assumed office as governor of the apex bank in September 2023, has been silent about where he wants to see the trading band for the Naira or when further liquidity might be injected into the market.
Some traders claimed that the CBN's lack of intervention in the official market since October has impacted Naira's value.
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 would increase nationwide.