Breaking News: Naira Hits All-Time Low on Official Market

The Nigerian naira plummeted to a new all-time low of N1,534 against the US dollar on the official Nigerian Autonomous Foreign Exchange Market. This staggering decline represents a 3.93% fall or a loss of N58 from the previous rate of N1,476.13/$ at the close of last week.

The situation has raised alarm bells across the nation as the naira struggles to maintain its value. Here are the key points:

1. Worst Official Rate Since 2023: Monday’s official exchange rate marks the bleakest point for the naira since the Central Bank of Nigeria floated the national currency in June 2023. The economic landscape is fraught with uncertainty as citizens grapple with the implications of this historic low.
2. Parallel Market Trends: Meanwhile, at the parallel market, the naira traded between N1,480 and N1,490. It appears that the local currency has been performing better in the parallel market, especially since the Financial Markets Dealers Quotations (FMDQ) reviewed its methodology for calculating the official exchange rate. This change led to the depreciation of the naira from over 900/dollar to over 1,400/dollar.
3. Recent Milestones: The naira’s downward spiral has been relentless. In December, it breached the N1,000/dollar $markonthe\; offcicial\; window.Notably,onDecember8,itfirstfelltoan\; all-timelowofN1,099.05/dollar$. Subsequent dates saw furthe to 1,043.09/dollar $on$$Dece$$mber$$28$$,N1,035.12/$ on January 3, N1,089.51/dollar $onJanuary9,and$$N1,082.32/dollar$ on January 10. The naira even touched N1,348.63/dollar on January 30, 2024, following the FMDQ’s revised methodology.
4. Bank Dollar Sales Decline: Commercial banks’ dollar sales dropped by 56.58% to $253.77 million on Friday from the peak of $584.53 million on the first trading day after the CBN ordered banks to sell excess dollars in the official FX market. Cumulatively, banks sold a total of $1.97 billion in one week.
5. Bureau De Change Rates: Currency traders in Abuja quoted buying rates for the greenback at N1,480 and selling rates at N1,503. The profit margin for Bureau De Change operators remains slim, with some unable to buy beyond N1,460.

As the nation grapples with this economic challenge, experts and policymakers are closely monitoring the situation. The naira’s resilience will be tested in the coming days, and citizens hope for stability and recovery.