Naira hits record low exchange rate of N983/$1 at black market

By Sodiq Adelakun

Nigeria’s currency, the naira, has reached a record low exchange rate of N983/$1 at the black market, according to quotes received on Wednesday.

This represents a 2.93 per cent drop compared to the previous day and a substantial depreciation from last week’s rate of N950/$1.

Despite various policy pronouncements, the Central Bank of Nigeria (CBN) is struggling to stabilise the foreign exchange market.

In mid-August, there were fears that the exchange rate could reach N1000/$1, but it temporarily appreciated to N840/$1 after the CBN warned speculators about potential losses.

At the official FX market, the naira fell by 0.34 per cent to N776.60/$1. Year-to-date, the currency has depreciated by 68.46 per cent to N776.60/$1 from N461/$1 at the beginning of the year.

The daily foreign exchange market turnover closed at $71.01 million on Tuesday, with bids ranging from N799.90/$1 to N720.00/$1.

At the money market, the Nigerian treasury bills secondary market closed on a mildly negative note on Tuesday with the average yield across the curve increasing by 1 basis point to 7.17 per cent from 7.16 per cent on the previous day, according to a report by FSDH Research.

Average yield across the long-term maturities expanded by 9 bps. However, the average yields across short-term and medium-term maturities closed flat at 3.05 per cent and 6.16 per cent, respectively. The treasury bill for July 11, 2024 (+9 bps) maturity bill witnessed selling pressure.