"It Will Hit N2,000": Nigerians React as Naira Falls to Its Lowest Level Against US Dollar

"It Will Hit N2,000": Nigerians React as Naira Falls to Its Lowest Level Against US Dollar

  • The naira hit a new low of N1,410 to a dollar in the unofficial market on Thursday, November 25, 2024.
  • Analysts said the demand pressure in the market is due to low dollar supply and led to a loss record of 3.29% or N45.00 loss
  • The naira is worsening and tilting towards the N1,800 per dollar mark, which analysts earlier predicted

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The naira hit its lowest on Thursday, November 25, 2024, as the demand pressure in the unofficial market drove it to a record low of N1,410 per dollar.

Nigerians React as Naira Falls to Its Lowest Level Against US Dollar
The demand pressure in the unofficial market drove the naira to drop. Photo Credit: BDC, Liubomyr Vorona
Source: UGC

This is against the closing value of N1,365 on Wednesday and represents a 3.29% lower, or N45.00 loss.

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As of Wednesday, the FMDQ data however showed that the domestic currency depreciated 0.41% to close at N882.24 to a dollar at the close of business, based on data from NAFEM, where forex is officially traded.

Analysts said that the depreciation is caused by the reduction in the supply of dollars from various sources, including the Central Bank of Nigeria (CBN).

The depreciation came despite efforts by the government to boost the local currency and reverse the losses.

In his speech earlier, the CBN governor, Olayemi Cardoso, said inflation will moderate this year and described the country's currency as undervalued.

He said:

“We believe that the naira is currently undervalued. ...And coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term.”

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The new record appears to be tilting towards the prediction by some analysts that the naira will further worsen, dropping to N1,800 per dollar.

Legit.ng earlier reported that Adetilewa Adebajo, the CEO of Corporate Finance Group (CFG) Advisory, said there is a likelihood that the naira will conclude the year within the range of N1,500 to N1,800 against the dollar.

How Nigerians are reacting on social media

Referring to the present administration led by Tinubu, @firstladyship said on the X page,

“He’ll waste everyone’s time. The Naira is going to hit ₦2000. He won’t achieve a 21% inflation rate. He won’t achieve a ₦trillion economy. He won’t achieve a unified exchange rate.”

@ruffydfire said:

“At some point, 1 million XOF was 16,000 Naira, today XOF is higher than the Naira. Make it make sense.”

@olumidecapital noted:

“ The rapid devaluation of the naira has made words like 'million' and 'billion' common”

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@sarnchos said:

"A few months ago, the naira was “overvalued”. After allowing market forces to dictate for a few months, the naira is now “undervalued” Isn't the “free market” sufficient to determine naira value anymore?"

FG addresses naira to US dollar exchange rate

Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said that the naira will strengthen in value in the foreign exchange market in 2024.

Speaking in an interview with Channels TV on Tuesday, December 26, 2023, Akabueze said this will be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

Source: Legit.ng

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