Official Market Struggles as Naira’s Fall to US Dollar Worsens: Black Market Hits New Low

Naira has continued its persistent downward trend against the US Dollar, with the steepest drops observed in the Black Market. The principal element of concern in the nation’s economic trajectory, the ongoing devaluation grandly paints a grim tale of monetary imbalance for the West African economic giant. What is the reason behind this sudden sway in the balance? Why is the economy not resilient enough.

The Naira’s value against the US dollar declined at the foreign exchange market on Thursday. 

Official and black market data indicate another decrease in the Naira’s value. 

The newly appointed CBN management team, confirmed by the Nigerian Senate, hasn’t implemented any changes as of now. 

The Nigerian currency value depreciated against the US Dollar in all foreign exchange markets on Thursday, October 5, 2023. 

This is due to ongoing supply issues and lack of guidance from the Central Bank of Nigeria‘s new management team.

Wothappen understand that the new CBN Governor, Mr Yemi Cardoso and four other deputy governors were confirmed by the Senate.

Since they assumed office, there has been no policy direction from the CBN, especially in the area of forex supply, and the market continues to react.

Naira to dollar exchange rate

Data from FMDQ securities showed that on Thursday at the Investors and Exporter window, the official market, naira closed at N775.20 against the US dollar.

This represents a 2.51% drop in value compared to N756.21/$1 it traded on Wednesday, October 4, 2023.

While at the Peer to Peer section mostly used by crypto traders and fintech, the Nigerian currency declined against the American currency on Thursday to sell at N1,009/$1 versus the previous day’s N1,005/$1.

Similarly, the naira lost more value against the US Dollar in the parallel market on Thursday.

Check shows that the naira against the dollar was quoted at N1,001/$1 on Thursday, the same rate as Wednesday’s N1,000/$1.

For the Pound Sterling, CBN is reporting that the value of Naira closed at N927.40/£1 versus N904.75/£1.

While against the Euro, it shrank by N17.95 to sell at N801.81/€1 compared with Tuesday’s rate of N783.86/€1.