BREAKING: Naira To Dollar Record Low Of N1320 At Parallel Market Exchange—-Naira on Wednesday fell to a record low of N1,320 per dollar following strong demand on the parallel market, also known as the black market.
This represents 3.03% or N40.00 weaker than N1,280 recorded at the close of trading on Tuesday.
This depreciation marks the lowest the Naira has come to since October 26, 2023, when it reached N1,300 against the dollar on the parallel market.
Why the depreciation
Market analysts attribute the recent decline to a steady rise in demand for dollars since the beginning of January.
- This demand is primarily driven by businesses seeking to restock goods or raw materials and individuals requiring dollars for overseas studies.
- Nairametrics also understands this is connected to diaspora Nigerians who are now departing in droves after the holiday season.
- Another reason is also due to the reopening of schools abroad as international students restock to pay school fees and hold some cash for holiday allowances.
Newsmen reported that forex turnover rose by 460.52% to $147.81 as the Nigerian naira tumbled against the dollar on Tuesday, January 16th, 2024, in the official markets.
The domestic currency depreciated 4.72% to close at N878.57 to a dollar at the close of business, based on data from NAFEM where forex is officially traded.
- This represents an N39.62 loss or a 4.72% decrease in the local currency compared to the N838.95 closed the previous day.
- The intraday high recorded was N1299.50/$1, while the intraday low was N720.50/$1, representing a wide spread of N579/$1.
- According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $147.81 million, representing a 460.52% increase compared to the previous day.
