The Nigerian foreign exchange (FX) market witnessed a great drop in the value of the naira, reaching an unprecedented intraday rate of N1,399 to a dollar at the official market yesterday, January 27.
Data sourced from the Financial Markets Dealers’ Quotations (FMDQ) revealed a substantial 6.15 percent depreciation, compared to the N1,313 rate observed during intraday trading just a day earlier. The lower segment of intraday trading also experienced a notable 11.28 percent decline, with the dollar being quoted at N789 on yesterday, in contrast to N700 on Wednesday.
As the trading day concluded, the naira continued its slide, marking a 2.08 percent loss against the dollar. The closing rate stood at N900.96, down from the N882.24 recorded on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
These developments underscore growing concerns about the stability of the naira in the face of persistent challenges in the foreign exchange market, with implications for various sectors of the economy. In a concerning development, Nigeria’s currency witnessed a historic decline, plunging to a record low of N1,416 per dollar in the parallel market.
This drastic drop can be attributed to robust demand coupled with a shortage of available dollars, as traders opt to hoard the limited currency.
