Naira hits record low of N1,320/$1 on black market

By Sodiq Adelakun

The Naira experienced a significant drop on Wednesday, reaching a record low of N1,320 per dollar on the black market.

This represents a 3.03 percent decrease compared to the previous day’s closing rate of N1,280.

This is the lowest value the Naira has reached since October 26, 2023, when it was valued at N1,300 against the dollar on the parallel market.

Market analysts attribute this depreciation to the continuous increase in demand for dollars since the beginning of January.

The demand is primarily driven by businesses looking to restock goods or raw materials and individuals needing dollars for overseas studies.

Additionally, the departure of diaspora Nigerians after the holiday season and the reopening of schools abroad, leading to international students restocking for school fees and holiday allowances, are also contributing factors.

The decline in the value of the Nigerian Naira emphasises the challenges faced by the country’s economy and the urgent need for measures to stabilise the currency.

On January 16th, 2024, the Naira experienced a significant drop against the US dollar in the official markets, with a 4.72 percent depreciation to close at N878.57 to a dollar. This represents a loss of N39.62 or a 4.72 percent decrease compared to the previous day’s closing rate of N838.95.

Throughout the trading day, the Naira reached an intraday high of N1299.50/$1 and an intraday low of N720.50/$1, indicating a wide spread of N579/$1. The forex turnover at the end of the trading session stood at $147.81 million, marking a substantial 460.52 percent increase compared to the previous day.