Naira’s Value Against Dollar Changes as Access, UBA, Other Traders Quote New Rates
- The naira has lost more value in the official and black markets on Wednesday, October 20, 2024
- The spot rate of the naira traded highest as dealers bid to buy the dollar at N1,705 per dollar and a low of N1,601
- The naira also crashed to its lowest in the parallel market, hitting N1,750 per dollar in several cities, including Abuja
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The value of the Nigerian currency, the naira, fell again on Wednesday, November 20, 2024, after a brief rebound on Tuesday, November 19, 2024.
The naira crashed against the dollar in the official window to close at N1,687.52, down from the N1,678.93 per dollar it traded the previous day.
Source: Getty Images
The naira depreciates highest in days
Wednesday’s crash was one of many instances in which the naira depreciated against the dollar amid the Central Bank of Nigeria's (CBN) intervention drought.
Data from the FMDQ Exchange shows that the local currency lost 0.51% of its value against the dollar amid low foreign exchange turnover.
Forex turnover on Wednesday, November 20, 2024, in the forex market stood at an abysmal $173.29 million from $296.63 on Tuesday, November 19, 2024.
Willing buyers and willing sellers quoted the spot dollar rate at a high of N1,705 per dollar and a low of N1,601.
Experts have predicted that the naira will soon hit N2,000 per dollar, based on the spot rate gap in the official market.
Experts predict new rates before December
Janet Ogochukwu, an economist and senior banker, disclosed that all the signs point towards N2000 per dollar on or before December.
“The pundits are right. The naira is already headed towards the direction of N2000 per dollar. Looking at the spot rate gap, one can tell that it is a matter of days before the local currency plummets to its lowest,” she said.
In the unofficial parallel market, the naira faced more headwinds following high demand for the dollar and a widening supply gap.
The Nigerian currency traded as low as N1,750 per dollar during the midweek trading session on the black market in Abuja, driven by strong demand for the safe-haven currency.
Foreign investors pull out of Nigeria as naira crashes
Legit.ng earlier reported that foreign inflows into the Nigerian Exchange Limited (NGX) dropped to the lowest point in September at N11.26 billion.
The development is based on data on the domestic and foreign portfolio investment on the NGX.
The report shows that as foreign inflow plummeted, foreign investors increased the amount they liquidated between August and September 2024.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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