Naira Loses N456/$ to Hit New Low Across All Markets, Defies CBN’s Forex Injection

• The Nigerian currency fell sharply to hit a new record low at the official and unofficial market on Monday, January 29
• According to data, the naira closed the day at N1,348 in the official market and N1,450/$1 in the unofficial market
• This development comes despite the fact that the CBN pumped $500 million across sectors to clear the forex backlog

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The naira recorded a massive loss at the unofficial market on Monday, January 29, 2024.

The Nigerian currency closed at N1,348 per $1 at the official window, marking a N456.73 or 51.1% depreciation.

This was against the N891.90 rate recorded in the previous session last Friday.

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The FMDQ data showed that the market recorded an intraday high of N1414.94/$1 per dollar, driven by strong demand. Also, the intraday low stood at N701/$1, depicting a wide spread of N713.94/$1.  

On the parallel market, a similar trend was followed. A 2.76% depreciation led the market to close at N1,450/$1.

The depreciation across all markets came despite the fact that the Central Bank of Nigeria (CBN) recently disbursed another tranche of $500 million across sectors to follow up on its recent payment of about $2 billion to clear outstanding commitments in manufacturing, aviation, and petroleum sectors.

According to CBN’s acting director of corporate communications, Hakama Ali, the move aligns with the apex bank’s commitment to addressing the backlog of authenticated foreign exchange transactions.

Ali said CBN Governor Olayemi Cardoso promised a comprehensive strategy to boost liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

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She said:

“As the Governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years.”

CBN settles $61.64m forex backlog

Legit.ng earlier reported that the CBN paid $61.64 million to international airlines through several banks.

Hakama Sidi Ali, the acting director of the corporate communications department at the apex bank, revealed this information in a statement over the weekend in Abuja.

According to a story in the New Telegraph, this raises the total amount of FX cleared in the last three months to $2 billion.

Source: Legit.ng