Naira records first loss of 2023 to US dollar across official and black markets - Economist make predictions

After opening the year 2023, with a positive, the Nigerian currency, Naira has recorded its first loss to the US dollar at the official market.

On Tuesday, 3 January 2023 which was the first trading day for 2023 Naira opened the year at N461.00/$1.

This is an appreciation when compared to N461.50/$1 which it closed in 2022 at the Investors and Exporters (I&E) segment of the foreign exchange market.

However, it was a swift turn of events on Wednesday, 4 January 2022, as Naira reversed the gains of a day earlier to record its first loss for 2023.

According to data from FMDQ Securities Exchange, Naira depreciated by 0.15% as the dollar was quoted at N461.67 as against the last close of N461.00. The naira’s weakness followed a low level of activity at the market as the daily foreign exchange market turnover declined by 54.82 percent to $69.33 million on Wednesday from $153.45 million recorded on Tuesday.

Most currency dealers who participated in the FX auction on Wednesday maintained bids between N440.00 and N462.00 per dollar.

At the black market, traders revealed that the value of Naira was exchanged at N745 compared to N736/$1 on Tuesday, 3 January 2023.

Also, in the peer-to-peer market where most cryptocurrency and online traders buy and sell dollars, Naira’s value dropped from N756 to dollars from N748/$ a day earlier.

Reacting to Naira to dollar exchange rate a political economist, Prof Pat Utomi, has said the exchange rate of the naira to the dollar may go above $1 to N1,000 if some “dramatic” measures are not taken by the federal government fiscal and economic policies.

Utomi stated this while speaking said on Channels Television’s Politics Today program on Wednesday, 5 January 2023, Leadership reports.