Naira Drops To All-time Low At Black Market

Naira Drops To All-time Low At Black Market

The Nigerian naira reached a historic low against the US dollar in the unauthorized market on Thursday, according to reports from currency traders across the country…CONTINUE READING

Around the Ikeja area in Lagos, traders noted that the exchange rate for the dollar was N935.00 per dollar.

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Meanwhile, dealers in Abuja reported it at N950.00 per $1 on the same day, compared to the previous session’s rates of N915 and N920.00.

Similarly, traders in Uyo observed the dollar being exchanged for N938.00 to N940.00 per dollar on Thursday, due to a considerable increase in demand.

However, there was a slight improvement in the naira’s value against the dollar in the Investors and Exporters (I&E) window on Thursday, as indicated by market records on the FMDQ website.

Razaq Fatai, an economist based in Abuja, attributed the decline in the naira’s value to a shortage of dollars amidst rising demand. He explained that historically, Nigeria’s foreign exchange has primarily come from crude oil exports, remittances, and investment inflows. Unfortunately, these channels, especially crude oil exports, have proven insufficient to meet the increasing demands.

Fatai highlighted that dwindling confidence in the local currency has led people to favor holding their savings in dollars, contributing to the unfavorable position of the naira.

To address this situation and stabilize the exchange rate, Fatai suggested a fundamental shift by boosting exports, particularly by increasing oil production and promoting non-oil exports. He emphasized that addressing issues like oil theft is critical to raising oil production levels and removing barriers in the trade of non-oil commodities.

At the official window, market data from Thursday indicated that the naira closed at N781.34 compared to N782.38 per $1 recorded on Wednesday. This implies a slight appreciation of 0.13% from the previous session.