Naira’s Value Plunges: N1k/$ Exchange Rate Rendered Obsolete as Naira Drops by N286 Against US Dollar
There’s a tough time ahead for the Nigerian currency in the official foreign exchange markets.
The Naira had a short-lived moment of victory, gaining N31 before plummeting N286 against the dollar in a matter of hours.
A much-needed dollar investment from Saudi Arabia is anticipated to help offset the pressures on supplies.
The Naira’s fortunes are dwindling in the Nigerian Naira Autonomous Foreign Exchange Market (NAFEM), which is sanctioned by the Central Bank of Nigeria.
The Naira’s rollercoaster ride continued following a significant leap of N31, only to hit a record low against the United States dollar at NAFEM just hours later.
As Reuters reports, on Thursday, November 16, 2023, the Naira is experiencing a low, exchanging for $1 at N1,105 in the official market.
This significant N230 drop occurs just hours after it closed on Wednesday at N830 to the dollar, as noted on Wothappen.com
This historic low represents a new record in the exchange rate between the Naira and the US dollar.
Imagine this: The Naira, over in the Peer-to-Peer (P2P) segment of the foreign exchange market — a platform frequently used by fintech — is undergoing drastic changes, just like you’d find elsewhere.
Through diligent checks performed by the fine folks at Wothappen.com, reports have surfaced that the Naira, as of 3 pm on Thursday, took a plunge to N1,115 against the American dollar. This presents a sharp drop from Wednesday’s closing rate of N1,113/$1.
On the flip side, in the bustling, ever-fluxing parallel market (also known around town as the black market), BusinessDay discloses that a dollar traded at N1,135/$ in the afternoon. Interestingly, this was identical to the rate at Wednesday’s market close.
Naira against other currencies
State of the Naira Against British Pound and Euro
quick debrief: we have no fresh intel on the current exchange rate of the Naira versus the Euro or the British Pound, straight from the Central Bank of Nigeria (CBN). Now, don’t feel left out, as soon as we get the details, you’ll be the first to know.
Looking back, last Wednesday told a telltale as the Naira took a hit against the Pound Sterling in the official marketplace. Despite beginning the day at N1,035.77/£1, the Naira finished at a weaker N1,047.84/£1, losing ground by a whole N12.07. Quite a day it was.
It wasn’t a fairy tale for the Naira against the Euro either. If the day had a soundtrack, it would have been ‘falling’ by N8.14. The Euro kicked off the day worth N903.13/€1 and wrapped up costing N911.27/€1 in Naira. In the world of finance, every kobo counts and these changes do add up.
To wrap up, while the Naira did end up falling in value against both the Pound Sterling and the Euro last Wednesday according to data from the CBN, current figures are not yet available. We promise to keep you posted on the dynamic scenes of the currency market. Hang on!
Nigeria Customs sets new exchange rate to clear imported goods
Wothappen.com previously highlighted that the Nigeria Customs Service updated the foreign exchange rate. And, indeed, you might have felt the ripple effects already.
This change comes as a response to the Naira’s depreciation against the dollar in global financial markets. In simpler terms, it’s an attempt to reconcile the rates within and outside Nigerian borders.
So, what does this mean for you? Well, anticipate a surge in the prices of imported goods across the country due to this adjustment.