Naira Crosses N1,500/$ in Official Market as Parallel Market Nears N1,700 Per Dollar
- The Nigerian currency, the naira, declined by 2.58% against the US dollar on Friday, February 16, 2024
- At the end of the trading day, the naira lost N39.71 to the US dollar, trading at N1,537.96 to a dollar
- The naira decline comes amid a surge in heading inflation in Nigeria, which hit 29.90% in January 2024
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The naira declined further against the US dollar in the official market on Friday, February 16, 2024, closing the week at N1,537.96 to a dollar as demand for the US greenback persists.
The depreciation comes amid a decline in forex turnover in the official Nigerian Autonomous Foreign Exchange Market (NAFEM), which fell by 74% to $84.10 million.
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The naira devalues further in the official market
The official and black markets witnessed a devaluation of the naira against the dollar, exacerbated by a surge in inflation, which hit a 17-year high in January 2024.
According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation surged 29.90% in January.
The NBS data shows a rise in inflation by 0.98% compared to December figures.
CBN's circulars fail to calm the market
The fall of the Nigerian currency comes amid various reforms introduced by the Central Bank of Nigeria to enhance FX supplies and boost the naira’s performance against the dollar.
CBN had introduced a series of circulars, including stopping international oil companies (IOCs) from repatriating 100% of their FX to their home countries.
Also, the apex bank removed the cap on Forex transactions by International Money Transfer Organisations (IMTOs) to ease Forex liquidity in the system.
Parallel market hits N1,600 per dollar
The naira fell at the end of the week by 2.5%, closing at N1,537.96 per dollar, per data from NAFEM.
The depreciation represents an N39.71 loss or 2.58% decrease compared to the N1,498.25 traded on Thursday, February 15, 2024.
The intraday high at the official market hit N1,631 per dollar and a low of N1,000, showing a margin of N631 per dollar.
In the unofficial parallel market, the naira depreciated to N1,590 to a dollar, declining by 1.5% against the N1,565 it closed the day before.
Naira Hits N1,600/$, CBN Reacts
Legit.ng reported that the Nigerian currency continued its free fall against the US dollar in the unofficial markets on Thursday, February 5, 2025, and the situation is worsening despite the efforts of the Central Bank of Nigeria (CBN).
Legit. A market survey showed that street traders sell the dollar above N1,600 to willing customers who are ready to buy.
This is a significant fall compared to Wednesday's exchange rate of N1,564/$1.
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Source: Legit.ng
