Victor Ezeja
The value of the Nigerian naira dropped on Tuesday in the official Investor and Exporter window from N856.57/$ on Monday to N1089.51/$.
This is according to statistics from the FMDQ Securities Exchange.
Join our WhatsApp ChannelThis marks a significant decline of 27.19 percent from its Monday closing value.
The naira began trading on Tuesday at N922.22/$, reached a high of N1251/$ and a low of N720/$, and ended the day at N1089.51/$.
The day’s total FX turnover was $97.45 million.
READ ALSO: Naira Dips To N1,245/$1 In Unofficial Market Amid CBN’s Effort
The currency exchange market trajectory shows that Tuesday’s depreciation of the naira is the fourth time it closed below N1,000 on the official window.
For instance, the naira reached its lowest point of N1,099.05/$ on December 8, 2023. It ended trading at N1043.09/$ on 28 December 2023; and on 3 January 2024, it finished at N1035.12/$.
The latest naira depreciation on Tuesday at N1089.51/$, is the second-lowest level since the Central Bank of Nigeria lifted the currency’s rate restriction. This was achieved through the official foreign exchange window.
In the black and P2P market, the naira equally witnessed a significant drop.
On the physical black market, one US dollar was sold at about N1,245, while naira traded at roughly N1230/$ in the early hours of Tuesday, up from Monday’s rate of N1220/$ on the P2P market, an unofficial market that is frequently used by speculators, retail investors, and cryptocurrency traders.
The Naira value has continued to decline despite the Central Bank of Nigeria’s efforts to settle outstanding forex backlogs. This is as the exchange rate gap between the black market and the official window continues to widen.
The apex bank recently reported that it had paid approximately $2 billion in outstanding foreign exchange forwards in the last three months. However, currency dealers at the unofficial market are not yet responding to this move.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
