Foreign Currency

Naira Crashes Again, Sets New Official Exchange Record Against US Dollar as One Pound Nears N2,000

  • Nigerian currency has reached its all-time low against the US dollar in the official foreign exchange market
  • The Naira exchanged at above N1,500 per dollar in the official market, making it the highest fall in history
  • A trader explained to naira performance against the US dollar in the unofficial exchange markets journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Naira plunged to its lowest level against the US dollar in the official foreign exchange market on Monday, February 12, 2024, closing higher than the unofficial parallel market.

naira to dollar exchange rate
Naira collapses in the official foreign exchange market
Credit: Bloomberg/Contributor
Source: Getty Images

Data from FMDQ Securities shows that at the Nigeria Autonomous Foreign Exchange Market (NAFEM), the Naira closed at N1,534/$ on Monday.

This represents a 3.93% fall, or N58, compared to the N1,476.13/$ it closed last Friday.

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Naira appreciates against US dollar as Nigeria Customs confirms new official exchange rate

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Monday’s official rate is officially the worst exchange rate for the Naira against the US dollar.

Also, CBN data revealed it was the same story for the Naira against the Pound Sterling and the Euro in the official market.

The Naira also crashed against the Pound Sterling in the official market by N40.48, ending at N1,912.52/£1 compared with the N1,872.04/sold last Friday.

While against the Euro, the Naira appreciated by N83.47 to close at N1,515.59/€1 versus the previous rate of N1,599.06/€1.

Naira to unofficial market

In the peer-to-peer (P2P) market, the local currency further declined against the dollar, exchanging at N1,509.1 on Monday.

P2P is the rate quoted mainly by fintech or online vendors.

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Naira crashes against US dollar, FG agrees on new official exchange rate

Similarly, the Naira lost more of its value against the dollar in the parallel market, also known as a black marker.

Abdullahi Gasau, a BDC operator on Airport Road in Lagos, told that he buys one dollar at N1,482 and N1,493 and sells above N1,500.

“If a customer wants to buy dollars from me, I sell at N1,510, or N1,505 depending on the quantity, while I buy from customers at N1,480 to as high as N1,490 depending on the quantity.'”

CBN governor plans next move for Naira

Earlier, reported that the CBN is set to introduce a singular foreign currency (FCY) gateway bank.

The apex bank said the move would centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN also announced a plan to streamline the number of BDC operators in Nigeria, improve the nation’s forex inflows and stabilise the Naira.

Read also

Naira appreciates in official market as CBN confirms highest dollar inflow in 19 months


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