Naira Plummets to Record Low Again, Hits N1,000/$ in Official Market
In spite of recent initiatives by the Central Bank of Nigeria to fortify the foreign exchange market, the naira concluded trading on the Investor & Exporter forex window at N996.75/$ on Thursday.
This marks a 13.95% downturn from its Wednesday closing rate of N874.71/$. Notably, the naira has witnessed a 27.75% depreciation since the beginning of the week, starting at N780.23/$, as indicated by information on FMDQ OTC Securities Exchange.
Following its rebound against the dollar last week, triggered by reports of the apex bank clearing its backlog, the naira has experienced a consistent decrease in both official and parallel markets.
In 2023, the naira has depreciated by approximately 40%, earning the unenviable distinction of being one of the poorest performing African currencies, according to assessments by the World Bank.
In the parallel market, there has been a notable depreciation in the currency’s value, dropping from N950/$ on Friday to nearly N1,140/$ as reported on Thursday by Bureaux De Change operators interviewed by The PUNCH, signifying a 20% decline.
Kadri, a trader, disclosed, “The dollar is priced at N1,100 for selling and N1,140 for buying.” Awolu, another trader, affirmed his willingness to purchase the dollar at N1,100 from the correspondent, emphasizing, “If you want to sell to me, it’s N1,100.”
Earlier in the week, Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, informed The PUNCH that the dollar was gaining strength against the naira due to resistance from those who had acquired it at a higher rate.
Gwadabe explained, “Speculators are observing sustainability factors. Once they perceive that the injection is not continuous, they start reacting. Also, there is resistance from those who bought at a higher price and are unwilling to incur further losses.”
Expressing concern over the currency’s decline, the presidency revealed plans for policies aimed at bolstering the local currency. Dr. Tope Fasua, a Special Adviser to the President on Economic Matters, asserted at an event that the government, led by the President, is set to surprise speculators with strategic policies.
