No More N865/$: Currency Traders Quote New Dollar Exchange Rate As Naira Falls Again

• The Nigerian currency closed with a weak performance against the dollar in the official market
• In contrast, the Naira, however, appreciated against the British pound and the Euro
• Nigerians continue to wait for the Central Bank of Nigeria's solution to foreign exchange challenges

Nigerian currency, the Naira, continues its poor performance against the US dollar at the official and black exchange rate market.

Data obtained from FMDQ securities showed that at the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira closed Wednesday, December 13, 2023, at N904.65 against the dollar.

This represents a 4.6 per cent or N39.62 loss compared to N865.03/$1, the Naira closed on Tuesday.

The fall of the Naira again was due to the rush in the demand for foreign exchange (forex) despite increased supply.

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Checks by Legit.ng showed that participants in the official market trade increased by 2.5 per cent or $21.80 million to $120.89 million from the $99.09 million recorded in the preceding trading session.

Naira to dollar unofficial market

In the Peer-to-Peer (P2P) window mostly used by fintech, the Naira weakened against the dollar to sell at N1,217/$1 versus the N1,207/$1 it sold in the previous session.

While in the parallel market, the Naira depreciated against the dollar on Wednesday by N10 to quote at N1,260/$1, in contrast to Tuesday's exchange rate of N1,250/$1.

Naira against Pounds, Euro

It was, however, a better performance for the Naira against the British pound sterling and the Euro.

The CBN data showed that the Naira against the Pound Sterling appreciated by N123.72 during the session in the official market to finish at N1,145.62/£1 compared with the preceding day's value of N1,269.34/£1.

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While against the Euro, it improved by N101.88 to trade at N986.71/€1 versus Tuesday's closing rate of N1,088.59/€1.

Economists set new exchange rate

Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market.

The EIU also said by the end of the following year (2024), the Naira would be exchanged at N861.5 for a US dollar.

Similarly, the EIU predicted that the pressure on the Naira would ease in 2024 without CBN implementing harsh measures.

Source: Legit.ng