Naira Crashes Against US Dollar, FG Agrees On New Official Exchange Rate

Naira Crashes Against US Dollar, FG Agrees On New Official Exchange Rate

  • Nigerian currency continued its free fall against the US dollar in both the official and unofficial markets
  • Latest data showed that the Naira has hit another low in the Nigerian Autonomous Foreign Exchange Market (NAFEM)
  • "This poor performance persisted despite improvements in forex supply over the last few days in the official market journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Nigerian currency, the Naira, depreciated again in the foreign exchange market, continuing its weak performance.

Naira to dollar exchange rate
Nigerian currency official exchange rate's free fall continues Photo credit: nurphoto
Source: Getty Images

Data from FMDQ securities, where Naira is officially traded, showed that the Nigerian currency crashed against the US dollar to N1,479.47/$1 on Thursday, February 8, 2024.

This represented a N60.69 or 4.3% depreciation compared to the preceding day's N1,418.78/$1.

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Naira appreciates against US dollar as Nigeria Customs confirms new official exchange rate

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CBN data also showed that Naira weakened against the Pound Sterling in the official market on Thursday by N42.93, ending at N1,824.82/£1 compared with the previous day's N1,781.89/£1.

While against the Euro, it depreciated by N34.68 to sell at N1,556.62/€1, in contrast to Wednesday's rate of N1,521.94/€1.

Naira to dollar at unofficial market

It was a similar scenario for the local currency in the peer-to-peer (P2P) FX and black markets segment.

Checks by showed that the Naira in the P2P market fell by N7 to sell at N1,470/$1 compared to the midweek session's rate of N1,463/$1.

Similarly, the Nigerian currency lost N15 against the greenback in the black market yesterday, settling at N1,500/$1 compared to the preceding day's value of N1,485/$1.

CBN claims FX market experienced increased supply

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Despite the Naira struggling to find stable footing, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), stated that the Nigerian foreign exchange market witnessed a boost of over $1 billion in liquidity within the past few days.

Cardoso made this known in a statement while presenting on the floor of the Senate in Abuja on Friday, February 9.

According to the CBN governor, there has been an upward shift in the FX market due to recent reforms initiated by the apex bank.

Cardoso assured the Senate that the recent reforms will bring positive results soon.

FG okays new official naira-dollar exchange rate

Earlier, reported that the federal government adopted a new official exchange rate set by the CBN and implemented by Nigeria Customs.

The latest adjustment captured on the federal government's single-window trade portal showed that importers would now pay N1,417.635 per dollar.

Read also

Naira appreciates in official market as CBN confirms highest dollar inflow in 19 months

The new exchange rate represented a slight increase of 0.28% compared to the previous rate of N1413.62/$.


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