Naira crashes to lowest level in history against US Dollar at official market, gap widens to N400

Naira fell to its lowest level in history against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market) on Thursday, November 9, 2023.

Data obtained by Legit.ng from FMDQ securities, where Naira is officially traded, showed that Nigerian currency closed the day's trading at N996.75 a dollar.

This represents a massive depreciation of 160.14 or 19.14% compared to the exchange rate 836.61 recorded the previous day (Wednesday).

Naira to dollar at unofficial market

It was, however, a different story for the Naira at the parallel market segments of the foreign exchange (FX) market on Thursday.

BusinessDay reports that the Naira on Thursday gained 1.75 per cent on the parallel market, also known as the black market. During the intraday trading on Thursday, the dollar was quoted at N1,120 compared to N1,140 mentioned on the previous day on the black market.

But it is not good news for the Naira in the P2P window, mostly quoted by fintech and cryptocurrency traders. Checks show that the Naira depreciated against the dollar to N1,079.2, higher than the N1,049/$1 reported on Wednesday.

But it is not good news for the Naira in the P2P window, mostly quoted by fintech and cryptocurrency traders. Checks show that the Naira depreciated against the dollar to N1,079.2, higher than the N1,049/$1 reported on Wednesday.

Tinubu's government make promises

Following sentiments around the government's plans to increase dollar liquidity, the Naira improved against the dollar last week.

This led to the Special Adviser to the President on Economic Matters, Dr Tope Fasua, boosting that the measure will help the Naira achieve N500-N600/$1 in the future. With the latest exchange rate, the Naira will need to recover at least N400 of its value if the government target can be reached.

CBN explains decision to lift forex ban on 43 items, IMF agrees

The CBN, in an earlier report, defended its decision to raise foreign exchange restrictions on 43 items after eight years.

According to new CBN directives, importers such as toothpicks, cement, and rice will now have full access to purchase dollars at official markets.