Naira Crashes Against US Dollar in Foreign Exchange Market
- Once again, the value of the naira has depreciated in the foreign exchange market against the US dollar
- New data shows that the naira suffered losses both in the official and unofficial exchange markets
- Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira has lost more value against the United States dollar in official and black foreign exchange markets.
According to data from FMDQ securities, the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market open the week at N1,675.62/$1 exchange rate on Monday, November 26, 2024.
Source: Getty Images
Monday's exchange rate is a N23 depreciation when compared to N1,652.62 to a dollar exchange rate achieved the previous trading date on Friday, November 22.
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The naira's poor performance comes as forex transactions reduced to 108.79 million dollars on Monday down from 243.05 million dollars recorded on Friday.
While in the black market, Vanguard reports that Nigerian currency depreciated on Monday to N1,770 per dollar compared to N1,750 per dollar it exchanged over the weekend..
Consequently, the margin between the parallel market and NAFEM rate widened to N117.38 per dollar from N97.38 per dollar last weekend.
A BDC trader Abdullahi explained to Legit.ng the state of the naira in the black market.
"The naira will continue to be under pressure during this festive season. Many Nigerians are looking to travel for the holidays and will need foreign currencies.
"The only solution is for the CBN to sell large amounts of dollars to us BDC operators."
Lagos Chamber predicts new exchange rate
Earlier, Legit.ng reported that the Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar.
Gabriel Idahosa, the President of LCCI, gave the prediction when he addressed journalists about the state of the economy in Lagos.
The chamber's president believes this rate is achievable if the CBN reviews the current free-floating exchange rate.
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Source: Legit.ng
