Naira Crashes Against Dollar in All FX Markets as IMF Sends Special Message to CBN on Nigeria’s Debt

• The naira went down again on Wednesday, dashing the hopes of Nigerians after depreciating by 0.29% in the official market
• A similar trend was observed in the unofficial market, where the naira traded at N1,545/$1 from the previous day's closing rate of N1,517/$
• This comes after the IMF asked the Central Bank of Nigeria (CBN) to settle the overdue FX backlog to give confidence to the currency

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

On Wednesday, February 14, 2024, the naira depreciated against the dollar, crossing the N1,500/$ mark due to a sharp drop in foreign exchange turnover.

This comes barely 24 hours after the naira closed at N1499.07 to the dollar on Tuesday, bouncing back from its all-time low in the official foreign currency market.

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Naira crosses N1,500/$ in official market as parallel market nears N1,700 per dollar

The naira depreciated by 0.29% at the official market, closing at N1503/$, according to statistics from the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday.

FMDQ data showed a broad spread of N659.62/$1, with the intraday high being N1,582/$1 and the intraday low being N922.38/$1.

Similarly, the naira experienced a depreciation at the unofficial FX market, where the currency traded at N1,545/$1, down 1.81% from the previous day's closing rate of N1,517/$.

This occurred after the International Monetary Fund (IMF) asked the Central Bank of Nigeria (CBN) to settle the overdue FX backlog to rebuild trust in the apex bank and the naira.

Legit.ng reported that the IMF insisted that paying the CBN's dollar obligations would rebuild confidence in the bank and the Nigerian currency.

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Naira bounces back, appreciates against US dollar in official market

It stated that the medium-term outlook would be improved if the authorities succeeded in developing and implementing a robust reform agenda.

Weighing in on the FX situation in Nigeria, Samuel Oyekanmi, a macroeconomic analyst, said,

"What will be great is to ensure improved liquidity in the official market, bridging the arbitrage caused by the disparity between the official and the parallel market, and nip the impact of FX shocks on prices in the bud."

CBN Raises Customs Duty by 2.6%

Legit.ng reported that the Nigeria Customs Service has announced an increase in the exchange rate for calculating import duties at the nation's seaports.

Data obtained from the federal government trading portal showed that from Wednesday, February 14, 2024, importers will be charged N1,481.482 per dollar for import duty.

This represents an N36.92 or 2.55% increase from the earlier N1,444.56 per dollar.

Source: Legit.ng