Naira hits new low of N1,035.12/$ at official market
The Nigerian Naira experienced a significant decline on Wednesday, January 3rd, 2024, closing at N1,035.12 per dollar in the official market.
This is 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 latest depreciation marks the third time the Naira has breached the N1,000/$ threshold, highlighting a persistent trend of weakness.
The first instance occurred on Friday, December 8th, 2023, when the currency reached a historical low of N1,099.05 per dollar. This was followed by a brief reprieve before a second depreciation on Thursday, December 28th, 2023, closing at N1,043.09 per dollar.
These developments represent a significant turning point for the Naira.
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 4.72 percent to close at N1,035.12 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed./
This represents an N46.66 loss or a 4.72 percent decline in the local currency compared to the N988.46 it closed on Tuesday./
The intraday high recorded was N1224/$1, while the intraday low was N700/$1, representing a wide spread of N524/$1./
According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $85.68 million, representing a 457.08 percent increase compared to the previous day./
However, the naira depreciated marginally at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.41 percent, quoted at N1220/$1, while peer-to-peer traders quoted around N1224.30/$1.
This represents a notable depreciation of 4.72 percent compared to the previous closing, raising concerns about the currency’s trajectory just three days into the new year.
