Nigeria: Naira Hits New Low Against Dollar

7 September 2022

Naira touched an all-time low at the Nafex Window on Wednesday, depreciating 0.11 per cent from N436.00 it traded on Tuesday.

Naira weakened further on Wednesday, falling 0.11 per cent against the U.S. dollar to its lowest level at the spot market.

This occurred as foreign exchange turnover surged 30.4 per cent from $63.05 million posted on Tuesday.

Before the close of trading on Wednesday, Naira opened at N431.88 per $1 but closed at N436.50, depreciating 0.11 per cent from N436.00 it traded in the session that preceded Wednesday, data recorded on FMDQ website, where forex is officially traded, showed.

With this, the naira has depreciated 0.4 per cent in the past three business days consecutively.

The currency traded within an intraday range of N437.50 (low) and snowballed to a high of N418.00 before closing at N436.50 per $1-- the lowest official market rate the Naira has touched ever at the NAFEX window.

Within the past weeks and months, the Naira has hovered within the market range of N419.00 and N430.00 and above mark, amidst lingering inflationary pressures, surge in forex demands and depleting foreign reserves.

Also, the Naira volatility against the dollar in the unauthorised market was further exacerbated on Wednesday by the rising demand and scarcity of the greenback currency in circulation.

At the Uyo black market currency dealers exchanged the dollar at N700.00 and sold within the range of N703.00 and N705.00 to a dollar on Wednesday.

"The market scattered today, we had high demands but there is scarcity of dollars. Banks are not selling to us as we want. They are not paying customers the quantity dollars they are demanding, that's why we have this scarcity," a currency dealer at Uyo Udi market told PREMIUM TIMES in an interview.

Abuja black market currency dealers said they bought the dollar at N698.00 and sold N700.00 to a dollar on Wednesday.

AllAfrica publishes around 500 reports a day from more than 100 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.