'No more N1,210/$' - Naira hits new low in all markets after FG's promise to crash the dollar

Naira again made history on Tuesday, October 24, 2023, when it hit its lowest on the streets against the US dollar, where it crashed to N1,310 per dollar.

The Nigerian currency had fallen to N1,210 per dollar on Monday, October 23, 2023, with traders blaming Forex scarcity for its continuous crash.

Naira crashes after Nigeria promised to inject $10 billion into the economy

Also, the Naira fell at NAFEM, formerly the Investors and Exporters (I&E) window, where it crashed to N844.77 per dollar after rebounding a day earlier.

The naira crash is barely 24 hours after the Nigerian government said the country expects a $10 billion inflow into the economy to ease the Forex crunch.

The Minister of Finance and Coordinating Minister for Economy, Wale Edun, stated this at a conference organised by the Nigeria Economic Summit Group (NESG).

Edun's promise comes as the Naira plummeted to N1,200 per dollar in the parallel market on Monday, October 23, 2023, from the N1,180 it traded on Friday, October 21, 2023.

The Naira also crashed to N808 to a dollar at NAFEM, the official exchange rate market.

FG to issue domestic issuance of instruments in dollars

The Minister revealed that President Bola Tinubu, on Thursday, October 20, 2023, signed two executive orders to strengthen the local currency market, which has crashed to its lowest in history since he became President on May 29, 2023.

Edun said the government would allow domestic issuance of instruments in foreign currency and let all cash outside the banking system be mopped up into the banks as measures to strengthen the Naira.

BusinessDay reports that the devaluation has also caused a hike in living standards, affecting businesses and households.

Experts also said the currency crisis is responsible for a surge in inflation, which hit 25.8% in September 2023.

The country is also battling a $10 billion demand backlog that has eroded investors' confidence in the new government's foreign exchange reforms.

Experts have said Nigeria needs a $10 billion injection into the economy to clear about $7 billion backlog and the rest to act as a buffer against the crash of the Naira.

Analysts predict N2,000 per dollar before December

A financial analyst and banker, Mary Egbe, said the currency crisis may linger longer and the naira crash further if specific steps are not taken.

She said the issue stems from Nigeria needing to earn more Forex from oil and non-oil exports.

"Expect Naira to hit almost N2,000 before December because there is no way to recovery except we increase our non-oil earnings by exporting more."

Nigeria is an oil-dependent economy. Not that anything is wrong with that. Most Middle Eastern countries are oil-dependent. Saudi Arabia is the most oil-dependent nation in the world, but they produce and export enough to meet their Forex needs," she said.