Naira sets new exchange rate record in official market as FX nears convergence

The Nigerian currency, the Naira, hit a new low on Thursday, November 23, 2023, closing at N956.33 to a dollar in the official Nigeria Autonomous Foreign Exchange Market (NAFEM).

The Naira depreciated by 12.11% to close at N956.33 to a dollar at the close of business on Thursday, November 23, 2023, per data from NAFEM.

Dollar supply drops at the official market

The depreciation represents an N115.8 loss, a 12.11% drop compared to the N840.53 it closed on Wednesday, November 22, 2023.

The lowest Naira has dropped since the Nigerian government began floating was recorded in early November when it depreciated to N996.75 per dollar.

Traders quoted an intraday high of N1,136 per dollar, while the intraday low recorded N615 per dollar, representing a difference of N521 to a dollar.

Forex turnover at NAFEM was around $105.50 million, representing a 46.77% decline from the day before.

The Naira loses 9 per cent value in November

Also, the Naira depreciated on the black market by 1.29% at N1,165 per dollar.

The Nigerian foreign exchange rate market has faced turbulence since President Bola Tinubu’s government moved to unify the exchange rate market.

On June 14, 2023, CBN announced the collapse of the exchange rate windows with the willing buyer and willing seller model.

Analysts believe it will take longer for the Forex market to converge, considering the shortage of Forex in the country.