Naira falls to N1,655/$1 in parallel market
By Sodiq Adelakun
Nigeria’s currency, the Naira, saw a significant drop in value against the US dollar on February 19, 2024, with an unprecedented intra-day peak of N1,712 to the dollar.
At the end of the trading day, the Naira had fallen by 3.78 percent, ending at N1,598.54 per dollar according to the figures from the NAFEM, the official forex exchange. This decline marked a substantial N60.58 or 3.78 percent fall from the previous closing rate of N1,537.96.
The day’s trading ranged dramatically, with the lowest value of the Naira at N1,100 to the dollar and a staggering high of N1,712, creating a gap of N612 in the value throughout the day.
The trading volume in the official NAFEM window also saw a downturn, with a 21 percent decrease to $66.43 million from the day before.In the parallel market, where forex trading is not officially regulated, the Naira’s value also tumbled, hitting N1,655 against the dollar, down by 3.93 percent from the N1,590 rate seen at the close of the previous day.
The Naira’s performance against the Euro was no better, as it depreciated by 4.09 percent, closing at N1,720 for every Euro, which is a drop from the N1,650 rate reported the day before.
Against the British Pound, the Naira weakened even further, closing at N2,040 to £1, representing a significant 5.39 percent decrease, or a N110 drop from the N1,930 rate seen the previous day.
In the cryptocurrency market where forex is sold using stablecoins, the Naira also settled at N1,717.01/$1.
It was gathered that the parallel market exchange rate has experienced a significant decline, plummeting to a record low of N2040 per Great Britain Pound (GBP), driven by persistent demand pressures that continue to erode the currency’s value./ /
This marks a notable decrease of 5.39 percent or N110 compared to the N1,930 rate recorded the previous day./
This depreciation stands as an unprecedented occurrence, representing the lowest point in the historical performance of the Naira./
The current economic situation requires effective and comprehensive measures to address the underlying factors driving currency depreciation and inflation.
