The Nigerian currency, the Naira, has continued its downward trend against the US dollar on the black market. This comes as a result of increased demand for foreign exchange and a shortage of supply, which has put pressure on the exchange rate.
As of the time of writing this, the Naira is exchanging for about N755 to 1 US dollar on the black market, which is a significant drop from its official rate of about 463 to 1 US dollar. This has led to concerns among Nigerians about the impact of the devaluation on the economy, particularly on the cost of goods and services.
Dollar to Naira black market exchange rate.
The naira lost value against the dollar, with the black market exchange rate N755 to $1 on May 3, 2023,. This is a depreciation of 0.53% from the previous session’s N750/$1 exchange rate.
The devaluation of the Naira has been attributed to a number of factors, including the fall in oil prices, which is Nigeria’s main source of foreign exchange earnings.
Experts have called for urgent action to address the situation, including increasing the supply of foreign exchange, diversifying the economy, and improving the business environment to attract foreign investment. Failure to take action could lead to further depreciation of the Naira and have serious consequences for the Nigerian economy.
Dollar to naira at the Investors and Exporters Window
The exchange rate between the Naira and the US dollar at the Investors and Exporters (I&E) window depreciated to close at N462.33/$1 on May 2, 2023, representing a 0.14% fall from the closing rate of N463/$1 recorded in the previous trading session.
At the official investors’ and exporters’ window, a total of 80.03 million dollars were traded.
On the P2P cryptocurrency exchange market, the naira also depreciated against the US dollar, trading on average for N745.8/$1 on Friday morning, 24th March 2023, down from N743.93/$1 on Thursday.
On the other hand, the naira to dollar exchange rate at the official Investors and Exporters window rose by 0.05% on Thursday, 23rd March 2023, to a final rate of N461/$1 from N461.25/$1 on Wednesday.
However, on Thursday, only $82.83 million changed hands at the official exchange, a decrease of 28.34% from the $115.58 million that moved on Wednesday.
On Wednesday, March 21st, 2023 saw a decrease in the country’s foreign reserves to $36.44 billion from Tuesday, March 7th, 2023’s total of $36.47 billion.
Naira to dollar crashes at black market amid Bola Tinubu’s emergence as President-elect March 1st:
On Wednesday, the naira to dollar black market exchange rate plummeted.
The black market exchange rate between the naira and the US dollar crashed on Wednesday, March 1, 2023, trading at an average of N760/$1 when compared to the previous trading session.
The dollar to naira, which closed on Tuesday, February 28, 2023, at N755 per $1, crashed to N760 per $1 on Wednesday following the announcement of Bola Ahmed Tinubu as president-elect.
In addition, the official Investors and Exporters window exchange rate between the naira and the US dollar closed at N462/$1 on Tuesday, February 28th, 2023. This is the same rate as it was on Monday.
Meanwhile, the country’s currency rose against the US dollar in the cryptocurrency P2P exchange market, trading at an average of N745.98 per $1 on Wednesday morning, March 1, 2023, a 0.60% increase from N750.5 per $1 on Tuesday.
However, at the official exchange on Tuesday, a total of $48.09 million was transacted, an 11.55% decrease from the $54.37 million that exchanged hands on Monday. The country’s external reserves were $36.679 billion on February 27th, 2023, up from $36.698 billion on February 24th, 2023.
Trading at the official NAFEX window
The exchange rate at the official market closed at N462/$1 on Tuesday, February 28, 2023, the same rate it recorded on Monday, February 27, 2023.
- The opening indicative rate closed at N461.33/$1 on Tuesday, February 28, 2023.
- Furthermore, an exchange rate of N462.5/$1 was the highest rate recorded during intra-day trading before it settled at N462/$1, while it traded for as low as N446/$1 during intra-day trading.
- A sum of $48.09 million in FX value was traded at the I&E window on Tuesday, which is 11.55% lower than the $54.37 million that exchanged hands in the previous session.
