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Naira Crashes Against US Dollar in Foreign Exchange Markets
Money

Naira Crashes Against US Dollar in Foreign Exchange Markets

by  Dave Ibemere 2 min read
  • 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

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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 opened the week at N1,675.62/$1 exchange rate on Monday, November 26, 2024.

Naira to dollar exchange rate
Naira value drops again against US dollar Photo credit: Bloomberg/contributor
Source: Getty Images

Monday's exchange rate is a N23 depreciation compared to N1,652.62 to a dollar exchange rate achieved the previous Friday, November 22.

Read also

Dollar crashes for a second time in Official window as traders quote new rates

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 the 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.

Read also

Naira finally recovers against dollar as traders quote new rates in official window

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

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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