Again, Naira Crashes Against US Dollar in All FX Markets, Traders Quote New Exchange Rate

Again, Naira Crashes Against US Dollar in All FX Markets, Traders Quote New Exchange Rate

  • Nigerian currency extended its depreciation against the US dollar in the foreign exchange market
  • New data showed that the naira fell in both the official foreign exchange window and also the unofficial market
  • There are concerns that the naira will fall further as the Central Bank of Nigeria prepares to hold its MPC meeting

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian naira has recorded another loss against the US dollar in the foreign exchange market.

Data from FMDQ securities shows that the naira crashed to N1466.31/$1 on Friday, May 10, 2024, on the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

Naira to dollar exchange rate
Naira free fall against the US dollar continues Photo credit: Bloomberg/contributor
Source: Getty Images

The closing rate on Friday represents a 0.5% or N6.58 depreciation of the naira's vanaira'sn compared to the previous day's closing rate of N1,459.73/$1.

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CBN adjusts import duty rate again after naira’s crash against dollar

The pressure on the naira was clearly evident, as during intraday trading at the NAFEM window, some participants paid as high as N1,490 to purchase a dollar.

Interestingly, the fall of the naira is despite a rise in the supply of forex into the spot market, as the turnover stood at $113.78 million, 34.8% or $29.40 million higher than the $84.38 million recorded a day earlier.

Naira performance

The CBN data also showed that the naira lost N135 of its value against the pound sterling in the official market on Friday, selling at N1,800.62/£1 compared with the preceding day’s valuday'sN1,765.90/£1.

It also fell by N29.67 against the Euro to close at N1,551.04/€1 versus N1,521.37/€1.

In the parallel market, also known as the black market, the naira fell against the US dollar.

Read also

Black market traders set new dollar rate as naira falls in official market, gap widens

BDC trader Abdullahi told Legit.ng that a dollar sells at N1,480/$1 on Sunday, May 12th, compared to the previous rate of N1,470/$1.

He said:

"The naira is under pressure due to high demand for the dollar by SMEs and Nigerians looking to leave the country.
"On Friday, I one of my customers requested for 5,000 dollars, and I had to ask around to get it. The demand is there, but we don't have enough dollars."

Due to the naira's poor performance, it has become one of the worst-performing currencies in the world just weeks after it was the best.

Peter Obi on new Customs exchange rate

Earlier, Legit.ng reported that the Central Bank of Nigeria adjusted the Nigeria Customs Service foreign exchange rate to clear imported goods at Nigerian ports.

Peter Obi reacted to the latest changes and expressed concerns that they could lead to the death of many businesses.

Read also

Naira continues free fall in all markets as Africa’s largest bank predicts New FX rate in 2024

He further advised the government on actions to help the naira recover against the US dollar.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

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