Naira falls to record low against US dollar, as CBN defence firepower wanes

Nigeria’s currency, the Naira, has continued to fall in value against the US dollar, and it is now officially at its lowest level at the official market.

According to FMDQ securities, Nigeria’s currency, the Naira, fell on Wednesday, September 7, closing the day at N436.50 per dollar at the Investors and Exporters (I&E), the country’s official foreign exchange market window.

This is the third-consecutive day of record-breaking depreciation, following Monday’s close at an 8-month low of N434.7 per dollar and Tuesday at N436.

At the parallel and peer-to-peer foreign exchange markets, popularly called the black market, Naira was also struggling.

For the parallel market, which is street trading, the Naira weakened from N691.13 to a dollar from 689.23/$ according to @naira_rates, a Twitter handle that tracks the rates.

Read also: Again, Naira falls heavily against US dollar, as report ranks it 11th worst in the world

While at the peer-to-peer market which is mostly used for online trading, the Nigerian currency is exchanged for the dollar at N710/$.

According to data obtained from the CBN website, Nigerian foreign exchange reserves, which are critical for the CBN in defending the Naira, fell to $38.93 billion as of Monday, 5 September 2022.

This represents a 113.1 million depreciation from the $39.04 billion it stood at August 5, 2022.

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