At the close of market on Monday, Nigeria’s naira plummeted to an all-time low of ₦1,534.39 per dollar, accompanied by a staggering 64.69% drop in forex turnover to $89.61 million, Nairametrics reports.
The financial news platform says the figure represents a significant decline, amounting to 4.19% or ₦64.42 weaker than Friday’s closing rate of ₦1,469.97, underscores growing concerns regarding the currency’s trajectory.
The unprecedented depreciation observed marks the lowest point in the historical performance of the naira, highlighting the severity of the prevailing economic challenges.
Despite recent efforts by the Central Bank of Nigeria (CBN) to bolster the foreign exchange market through interventions, the currency’s downward trend persists, prompting concerns about its potential impact on the broader economy.
This development is likely to aggravate existing inflationary pressures and further strain household budgets, particularly for those reliant on imported goods.
The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.
The domestic currency depreciated by 64.42% to close at ₦1,534.39 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
This represents an ₦64.42 loss or a 4.19% decline in the local currency compared to the ₦1,469.97 it closed on Friday.
The intraday high recorded was N1550/$1, while the intraday low was ₦1,000/$1, representing a wide spread of ₦550/$1.
According to data obtained from the official NAFEM window, forex turnover at the close of trading was $89.61 million, representing a 64.69% decrease compared to the previous day.
Similarly, the naira depreciated marginally at the parallel forex market where forex is sold unofficially, the exchange rate quoted at ₦1,490/$1, a decrease of 0.34% against ₦1,485 it closed the previous day,
The Great British Pound (GBP) appreciated marginally by 0.27% to close at £1/₦1,885 as against £1/₦1,890 the previous day while Naira also gained against the Euro by 0.63% to close at ₦1575/EUR1 against ₦I585 / EUR1 reported the previous day.
In the cryptocurrency market where forex is sold using stablecoins, the Naira also crossed N1,506.65/$1.
[Nairametrics]
