Naira Remains Consistent at Breaking All Exchange Rate Records
The naira’s exchange rate against the dollar hit an unprecedented low of N999/$1 during trading on October 19, 2023, leaving financial markets in shock and disarray.
The alarming data emerged from intraday trading statistics provided by the Financial Markets Dealers Quotations (FMDQ), the official marketplace for forex transactions through the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Reports suggest that this jaw-dropping figure may not represent the final outcome, with expectations of a possible decrease as the trading day progresses.
Meanwhile, parallel trading on the black market, often conducted through peer-to-peer (P2P) transactions, tells a similar story of the naira’s continued decline. The exchange rate on the black market stands at a staggering N1,152/$1, a dire indication of the ongoing crisis.
Intriguingly, the latest closing exchange rate data from the FMDQ NAFEM recorded a rate of N782.68 on Thursday, a slight appreciation compared to the previous day.
However, this seemingly positive shift should be seen in the context of the massive plunge observed earlier in the week when the official exchange rate plummeted to N848/$1 on Tuesday. This drop marked a historical low, shocking both market participants and spectators.
The forex market also experienced a noteworthy intraday low of N701/$1, further highlighting the unpredictable nature of these fluctuations. The total daily turnover reached a staggering $97.47 million on that tumultuous day.
An in-depth examination of P2P websites later on Thursday revealed a more disheartening scenario, with exchange rates quoted as low as N1,170, a significant depreciation from the earlier N1,152 figure.
This dire situation unfolds in the wake of the Central Bank of Nigeria’s (CBN) recent announcement of a major shift in terminology within the Nigerian Foreign Exchange (FX) market.
The changes are part of the CBN’s strategy to unify the fragmented exchange rate systems into a single market.
Nigerians are left grappling with a tumultuous financial landscape, where the naira’s future remains uncertain. The record-breaking exchange rate is a stark reminder of the challenges faced by the country’s economy, prompting concerns and discussions about the measures needed to stabilize the situation.
Source: Nairametrics
