Naira Continues Decline with Official Rate Slipping to N900.96 Against the Dollar

Naira Continues Decline with Official Rate Slipping to N900.96 Against the Dollar

 On Thursday, January 25th, 2024, the Naira experienced a further decline against the US Dollar, affecting both the official and black markets.

In official forex trading on the NAFEM platform, the domestic currency depreciated by 2.12%, closing at N900.96 to a dollar at the end of the business day. This marks an N18.72 loss or a 2.12% decrease compared to the previous day's closing rate of N882.24.

The intraday high reached N1399/$1, while the intraday low was N789/$1, indicating a considerable spread of N610/$1. Forex turnover at the close of trading stood at $115.19 million, reflecting a significant 103.52% increase from the previous day.

Nairametrics reported a record low for the Naira at N1,410 per dollar on the parallel market, representing a 3.29% or N45.00 drop from the N1,365 recorded the day before. This unprecedented depreciation underscores the severity of the current economic challenges.

Key Points

- Naira depreciates against the US Dollar in both official and black markets.

- Official closing rate on NAFEM is N900.96 to a dollar, reflecting a 2.12% decrease.

- Intraday high and low are N1399/$1 and N789/$1, respectively.

- Forex turnover at the close of trading sees a significant increase of 103.52% to $115.19 million.

- On the parallel market, Naira hits a record low of N1,410 per dollar, indicating a 3.29% decline.

- Recent efforts are underway to authorize ABCON to publicly display black-market rates online.

- ABCON proposes to regulators to allow BDCs to restart public display of exchange rates.

- Central Bank's measures to regulate BDC operations and reduce unofficial market prominence are being reconsidered.

- Previous actions against AbokiFX and Naijabdcs.com led to the cessation of black-market rate publication online.

- The central bank's strict stance against recognizing any FX in the market is reiterated.