Exchange Rate Falls to Unprecedented Low as Supreme Court Confirms Tinubu’s Victory
The Nigerian exchange rate, both in the official and parallel markets, faced a decline on the day the Supreme Court confirmed Bola Ahmed Tinubu’s victory in the presidential election.
According to reports from traders in the parallel market, the exchange rate between the naira and the dollar dropped to an unprecedented low of N1,300 to the dollar, highlighting concerns in Nigeria’s unofficial foreign exchange market.
On the official NAFEX market, where the exchange rate is officially determined, the naira-to-dollar rate fell to N837.49, down from N801.1 the previous day.
This marks the fourth-lowest level since the unification of exchange rate windows.
Simultaneously, Nigerian equities experienced a 0.18% decline, registering back-to-back losses as stockbrokers evaluated third-quarter earnings results from various companies.
Earlier in the day, the Supreme Court rejected an application from Atiku Abubakar and the Peoples Democratic Party (PDP) to submit new evidence concerning President Bola Tinubu’s diploma from Chicago State University (CSU).
The apex court also dismissed an appeal filed by Peter Obi, the presidential candidate of the Labour Party.
The Supreme Court’s ruling did not significantly impact the capital or forex markets, possibly because market participants had already anticipated a legal victory for the president.
With the legal challenges behind him, it is expected that the president and his administration will shift their full attention to economic recovery and stability.
It remains to be seen how the exchange rate and other economic factors will develop in response to these changes.
Source: Nairametrics
