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The exchange rate between Nigeria’s naira and the US dollar has dropped to its lowest level ever on NAFEM, where official forex is sold.
This signifies a whopping 20,5 percent devaluation, the naira’s lowest level ever recorded versus the dollar. Previously, the lowest figure was N848/$1 on October 17, 2023, representing a one-day 8,17 percent devaluation at the time.
The market also registered a US$88,3 million turnover, a 66 percent decrease from the US$259,8 million recorded last Friday. The intraday highs and lows were N998/US$1 and N475/US$1. The intra-day low is noteworthy, representing an N523/US$1 reduction to the closing day rate.
The official market’s devaluation contrasts sharply with the illicit market, where the exchange rate appears to have risen during the previous three trading days.
It was reported on Wednesday last week, that the value of the Nigerian currency increased against the dollar. The exchange rate that day was N1,300 per dollar, a 0,76 percent (N10) increase above the N1,310 rate recorded on the black market the previous day.
The persistent pressure on foreign exchange, exacerbated by the Naira plunging as low as N1,310 to the dollar, began to relax last week Wednesday as demand fell somewhat.
This was the first time the Nigerian currency was catching a break since the president of the country Bola Ahmed Tinubu, unified the currency rates.
The Nigerian currency has been slowly declining in value relative to the US dollar since the current president was just sworn in back in May. According to the president, taking this action is essential for the nation’s economic recovery. – Business Insider Africa
Online Reporter