More concerns for CBN, as currency speculators crash Naira to record low

The continuous fall of the Nigerian currency, the naira reached a record low against the dollar at the parallel market on Wednesday.

According to market data, Naira closed at N493 on Wednesday a 1.23 percent drop from N487 it traded on Tuesday.

This occurred as black market speculators begin to take advantage of the Central Bank of Nigeria’s (CBN) adoption of a new exchange rate to buy up and hoard dollars.

Market observers are now predicting the action of currency, speculators will not only further increase pressure in the market but see naira fall above N500 to the dollar by next week.

The last time Naira touched N500/$1at the black market was on November 30 last year.

However, Nigerian naira strengthened marginally to the US dollar on Wednesday at the Investors and Exporters (I&E) window.

Read also: Naira falls to weakest level in six months, as CBN confirms devaluation

Data from FMDQ shows the Naira closed at N411.50 to the dollar, a N0.06 or 0.02 percent appreciation from N411.56 it traded on Tuesday.

FMDQ data also showed market participants bid for dollars at a low of N420.25 and a high of N363.00.

This occurred as the dollar supply grew from $130.50 million to $471.85 million. This is a 261.5 percent increase.

The difference between black market and official market values has now increased to N81.50 since Wednesday trade.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now