The US dollar continues to weaken the value of the Nigerian naira, which as of Thursday hit a fresh low of N1,355 on the black market.
Five months have passed since the dollar rate in the parallel market first surpassed the N1,000 threshold.
The naira closed at N902 versus the dollar, up from N931.23, on the official Nigerian Foreign Exchange Market (NAFEM), despite the dollar’s continued growth.
The cost of living in Nigeria is rising as a result of the naira’s depreciation.
See How Much Dollar Exchange To Naira Today 12 November 2021
The Central Bank of Nigeria (CBN) is trying to settle forex commitments in order to boost the market, and AfreximBank has provided $2.25 billion in foreign exchange support. Despite these efforts, the naira’s devaluation has not stopped.
According to Daily Trust reports, from late December 2023 to early January 2024, the exchange rate varied between N1,170 and N1,200. During this time, policymakers expressed optimism over the naira’s potential for recovery.
But in recent days, there has been more pressure on the currency, and on the parallel market, it has risen to N1,300 versus the dollar.
The dollar is currently selling at N1,350 in Lagos and N1,355 in Abuja, underscoring the continued difficulties the Nigerian economy faces and the pressing need for sound monetary policy to keep the naira stable.
4th May 2022: See How Much Naira Exchange To Dollar Today
“I don’t know what is happening again,” said Gidado Ibrahim, a Bureau de Change operator in the Federal Capital Territory, in an interview with the site. “You can imagine that for some time now, it was exchanging between N1, 200 and N1, 250 to the dollar and just from yesterday, it has gone to N1, 355 and even more.”
“To worsen the situation, the dollar is just going up against the naira and it doesn’t look like the naira will recover anytime soon. The government needs to sit up.”
Also speaking, another BDC operator, Ali Musa told Daily Trust that, “Dollar is even difficult to get. Anyone that wants to buy up to $1,000, we have to source from colleagues.
“I think the scarcity is what is causing it (US dollar) to be going up and it is unfortunate because it will reach a point where people will no longer be interested in buying. Even myself, I am angry because the dollar should not be this high against the naira.”
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Abu Dollar, a different BDC operator in Lagos, reported that it sold for N1, 350 yesterday.
He stated that the severe lack of money in the market could lead to more price increases.
“As I am talking to you, many people are unable to get the dollars. I think it is because of people travelling. Some of them came for the holiday and they want to return. This I believe is one of the reasons for the hike in rate.”
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