Naira falls to new low of N1,590 in black market

The naira on Friday fell to a new low of N1,590 in the parallel market also known as black market following shortage of dollars.

The first time the naira depreciated to this level was on February 16, 2024, according to data compiled from street traders and online data collating platforms.

Compared with the previous day rate, the naira lost N5 as the dollar traded at N1,585 per dollar on Wednesday in the black market.

The Bureau De Change (BDC) operators said they are not getting enough dollars from the commercial banks, which contradicts the directive from the Central Bank of Nigeria (CBN).

The directive had initially permitted BDCs to buy foreign exchange from authorised dealers, with a weekly cap of $25,000.09.

In the official foreign exchange market, known as the Nigerian Foreign Exchange Market (NFEM), the naira depreciated by 0.6 percent or. N9.13 on Thursday as the dollar was quoted at N1,547.81 as against the previous close of N1,538.68, data from the CBN indicated.

Authorised currency dealers quoted the dollar at the highest rate of N1,560 on Thursday lower than N1,550 quoted on Wednesday at the NFEM.

The market recorded the lowest rate of N1,543.09 per dollar on Thursday, lower than N1,532 closed on the previous day.

Against other currencies, the local currency traded steadily at N2,020 per Pound, N1,690/Euro, and N1,150 per Canadian dollar.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) said, the BDCs are constrained on availability, unfavorable offer rates, limited participating banks, lower margins and business uncertainties.

According to him, the combination of all the above factors creates an atmosphere of loss of confidence in the framework for supply, triggering of currency substitution and an awakening of speculative activities and leading to the unfortunate current naira regression from strength to weakness.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.