Nigerian Naira Hits Record Low at N848 per Dollar on Official Market and heading to ₦2000 per dollar at Black Market Exchange Window.
The Nigerian naira experienced a significant decline in its value, reaching a record low of N848 per US dollar on the official foreign exchange market. This unprecedented drop, as reported by data from FMDQ, reflects the ongoing challenges with dollar shortages within the country.
This sharp decline of nine percent from the previous day’s closing rate of N778 per US dollar, marked the largest single-day decrease in the currency’s value this month. Simultaneously, the naira faced another setback, falling to a low of N1,050 per US dollar on the parallel market, where strong demand for dollars persists.
Market participants have noted that individuals seeking to travel for business, education, healthcare, and tourism are increasingly turning to street traders to purchase dollars. This shift is a direct response to the inability to meet their foreign exchange requirements through the official channels.
Dollar to Naira at Black Market Crashed.
In a significant development, the naira hit an all-time low of N1,060 per US dollar on Wednesday afternoon, driven by the high demand for dollars within the parallel market, commonly referred to as the black market. This represents a marginal depreciation of 0.99 percent (N11) compared to the N1,049 exchange rate observed in the morning.
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For several days leading up to this unprecedented drop, the local currency had remained relatively stable at N1,049 per US dollar in the parallel market.
The escalating challenges faced by the naira are a cause for concern, as the official exchange rate and the parallel market rate continue to diverge. The inability to fulfill the rising demand for foreign currency through official channels has prompted many Nigerians to seek alternative means to acquire dollars, further impacting the value of the naira in the parallel market.
As the currency struggles with persistent depreciation, financial experts and market analysts are closely monitoring the situation, assessing the impact of this ongoing challenge on Nigeria’s economy and its implications for businesses and individuals alike.
The government and relevant authorities continue to explore measures to stabilize the exchange rate and ensure a more predictable and sustainable foreign exchange market.
