The naira on Tuesday weakened to an all-time low, exchanging 1,825 and heading to 2,000 against the dollar at the parallel market.
This represents 6.30 percent lower than N1,710 per dollar closed on Monday at the black market, also known as the parallel market.
Read also: Naira again falls to record as dollar sales decline further
The naira depreciation followed a strong demand by the end-users amid a shortage of the greenback across foreign exchange (FX) markets.
“There is no dollar in the market and the little ones that come to market are highly-priced, “One of the street traders told BusinessDay.
Read also: Naira loses 69% of its value against dollar since FX reforms
In a concerning turn of events, the naira plummeted to a new historic low against the US dollar on Monday, spurred by a significant decrease in dollar sales within the official foreign exchange (FX) market.
Data revealed that both the dollar sales facilitated by banks and transactions between willing buyers and sellers experienced a sharp decline of 26.59 percent, amounting to $66.43 million on Monday, compared to the previous dip of $84.10 million reported on Friday.
Following the day’s trading activities, the naira spiraled to an unprecedented low of 1,574.62 against the dollar, marking a notable 2.33 percent depreciation from its standing at 1,537.96/$1 on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Analysis of intraday fluctuations indicated a worrisome trend, with the local currency’s intraday high dropping to N1,712 on Monday from N1,631 observed on Friday. Similarly, the intraday low also experienced a depreciation, sliding to N1,100 compared to N1,000 reported on Friday, according to data from the FMDQ Securities Exchange.
As the naira struggles against the dollar, economists and financial analysts express concerns over the implications for Nigeria’s economy and urge proactive measures to address the escalating currency woes.
