Nigeria: Naira Hits All-Time Low At Official Market

24 September 2021

The currency didn't do well at the black market either.

Naira weakened significantly against the U.S. dollar at the official market Friday, reaching its lowest rate in that market, even as foreign exchange supply rose marginally.

Data from the FMDQ securities exchange window where forex is officially traded, showed that naira closed at N414.90 per $1, the lowest it has ever traded at the so-called Investors and Exporters window.

The currency's performance on Friday represents N1.22 or 0.30 per cent devaluation from N413.68 it exchanged on Thursday.

Forex turnover dipped by 10.10 per cent with $193.59 million recorded against the $175.86 million posted in the previous session on Thursday.

Naira staged an intraday high of N400.00 and a low of N415.20 before closing at N414.90 per $1 on Friday.

This is coming just a week after the CBN expanded its clampdown on those it claimed contributed to the currency's rapid decline in recent months.

The central bank initially stopped sales of forex to Bureaux De change operators and last week forced abokiFX to stop publishing black market rates.

At the black market in Abuja on Friday, dealers said naira exchanged as low as 570 in the morning, but later rose to 568 per a dollar in the evening as demand reduced.

In Uyo, Akwa Ibom State, dealers said the local unit exchanged hands with the hard currency at N570 in the morning, but later sold for N560 per a dollar at the close of the day's business.

"Since it's the weekend already, people are afraid to keep their dollars so that it will not depreciate in value since we can no longer use abokiFX.com. Traders are now using their intelligence to sell their dollar so they will not be running losses," one dealer who asked not to he named said.

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