Naira depreciates to N1,009 on official window

The Naira has experienced a historic decline to N1,009.05 per dollar on the Nigerian Foreign Exchange Market (NAFEM), reaching an unprecedented low.

Data retrieved from the FMDQ website reveals that the beleaguered local currency succumbed to pressure, surpassing the N1,000 threshold at the conclusion of trading on Friday, December 8, significantly narrowing the gap with the parallel market.

Just a day earlier, the currency had been valued at N843.07 to a dollar, marking a substantial decrease of 19.68 percent as it settled at N1,099.05 to the dollar on the official NAFEM platform, formerly known as Investors and Exporters (I&E) window.

The open indicative rate signaled a challenging day for the local currency, standing at N844.10 to the dollar. However, the spotlight was on the spot exchange rate, which peaked at N1,186.00 during intra-day trading, ultimately stabilizing at N1,099.05 to the dollar.

Against the backdrop of this volatile exchange rate environment, NAFEM reported a notably reduced volume of activity, with a total of $70.90 million changing hands. This marked a 43.38 percent decrease compared to the $137.35 million recorded in the preceding day’s trading.

This unpredictable fluctuation in the naira’s value against the dollar underscores the deteriorating state of the economy and the erratic nature of the local currency. In the parallel market, the naira exchanged at N1,182, adding to the concerns of Nigerians as they anticipate the upcoming Yuletide season with evident economic challenges.