Naira Falls in All Forex Markets, as Black Market Traders Sell One Dollar Above N1,000
- Nigerian currency, the naira, fell across both the official and unofficial foreign exchange markets to start the new week
- In the official market, the value of the naira dropped by N4 against the US dollar, while it returned above N1,000 in the black market
- The federal government has a target exchange rate of N650 to N750 against the dollar by December 2023
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The volatile movement of the naira against the dollar continued across the parallel market and the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, November 7, 2023.
Data obtained by Legit.ng revealed that the Nigerian Naira started the new week lower against the US Dollar in the official market as it closed at N809.02 a dollar.
Source: Getty Images
The latest exchange rate at the official market indicates N28.79 depreciation when compared to N780.23/$ dollar it closed on Friday, November 3, 2023.
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The depreciation of the naira happened as the dollar supply in the official market dropped to $87.65 million on Monday.
FMDQ securities data showed that the naira came under intense pressure on Monday, exchanging at an intra-day high of N1,100.
Naira to the dollar at the black market
In the black market, the naira crashed against the dollar on Monday, falling to N1, 030/$ on average in the parallel market.
This represents a N80 loss or a 8.42 per cent decline of the local currency compared to the N950 it closed the week at last Friday.
Punch reports that this is the first time the naira has fallen since the Central Bank of Nigeria began to clear some of its FX backlogs last week.
It was the same story in the Peer-to-Peer (P2P) window, as the naira depreciated against its dollar and returned to N1,010 a dollar.
CBN explains decision to lift forex ban on 43 items, IMF agrees
The CBN, in an earlier report, defended its decision to raise foreign exchange restrictions on 43 items after eight years
According to new CBN directives, Importers of items such as toothpicks, cement, and rice will now have full access to purchase dollars at official markets
Source: Legit.ng
