The Nigerian naira has reached an unprecedented low in the official market, as the exchange rate plummeted to N993 per US dollar on the Nigerian Foreign Exchange Market (NAFEM), marking a colossal 20.5% depreciation.
This fall surpasses the previous lowest point of N848/$1 recorded just two weeks ago, which, at the time, had already raised alarm bells with its 8.17% depreciation in a single day. The decline has left both experts and citizens alike questioning government’s efforts in stabilizing the naira.
Furthermore, the official market saw a sharp drop in trading volume, with a turnover of only $88.3 million, representing a 66% decrease from the $259.8 million recorded just last Friday. Intra-day highs and lows painted a grim picture, fluctuating between N998/$1 and N475/$1, with the latter being particularly shocking, offering a N523/$1 discount compared to the closing rate.
What makes this downturn even more perplexing is the apparent contrast to the black market, where the exchange rate has shown signs of appreciation over the past three trading days. Traders and speculators in the unofficial market are experiencing a different narrative, leaving many to wonder about the possible implications for the overall economic landscape.
The naira’s downward spiral has raised serious concerns, with both financial experts and everyday citizens anxious about the implications of this precipitous decline in the currency’s value.