Nigeria: Naira Drops to Record Low On Official Market After Devaluation


Abuja — The Nigerian naira fell to a record low on the official market yesterday, with lenders quoting it 7.7% weaker against the dollar, following a currency devaluation aimed at unifying multiple exchange rates.

The naira dropped to 419.75 per dollar, from its last trade at 381 on Monday, its last official session. The official market rate, backed by the central bank, has been stuck at 381 naira to the dollar for almost a year after two devaluations last year.

No quotes have been available on the naira's official rate since Tuesday.

On the over-the-counter spot market NAFEX=FMDQ, the currency traded at 410.65 naira against the dollar on Friday, and it was quoted at 483 on the black market NGNFX=BDCN.

Nigeria operates multiple currency regimes, which frustrate businesses and have prompted calls from the World Bank for the rates to be unified to attract investment.

Rising dollar demand has put pressure on the naira as providers of foreign exchange, such as offshore investors, exited after the COVID-19 pandemic triggered a fall in global oil prices.

The World Bank has linked approval of a $1.5 billion budget support loan to currency reforms.

The central bank has been trying to unify the rates and boost the dollar supply through direct interventions. It extended an incentive offer last week to recipients of dollar remittances to try to encourage more inflows from the Nigerian diaspora.

More From: Leadership

Don't Miss

AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.