CBN solution no longer working as naira value falls by 9.58% in 24 hours, worst in black markets

The Naira depreciated further against the US Dollar in both the official and unofficial foreign exchange markets on Wednesday, November 7, 2023.

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the Central Bank of Nigeria recognised market, the naira closed at an exchange rate of N874.71 to the US dollar.

This represents a 9.8% drop in value for the naira when compared to 798.19 closing rate achieved on Tuesday, November 7.

The depreciation of the naira occurred despite an improvement in foreign exchange supply.

Data from the FMDQ Securities Exchange showed that forex transactions worth $113.52 million was achieved on Wednesday which is a higher than the $70.92 million recorded on Tuesday.

Naira to dollar exchange rate at unofficial market

It was a similar story for the naira at the parallel and Peer-to-Peer (P2P) unofficial foreign exchange markets.

In the P2P segment of the forex market, the local currency declined to as high as N1,099 against the US dollar. This is huge drop from the N1,015/$1 it closed on Tuesday.

The same scenario unfolded in the parallel market window, as reported by Bloomberg.

The value of the naira slumped by approximately 7% to 1,150 naira per dollar on Wednesday, down from 1,070 the previous day.

Furthermore the CBN reports that on Wednesday at the official market, the naira exchanged against the Pound Sterling at N1,054./£1 versus the previous day’s

While against the Euro, the local currency exchanges at N917.6/£1.