Naira hits N999/$ at official market

Naira on Thursday fell to a record low of N999 according to data quoted by Reuters from Refinitiv, an LSEG (London Stock Exchange Group) business, and one of the world’s largest providers of financial markets data and infrastructure.

But data from the FMDQ showed that the naira closed stronger than the dollar, gaining 1.01 percent as the dollar was quoted at N782.68 on Thursday compared to N790.68 quoted on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the market trading segment for Investors’ Exporters’ and End-users that allows for foreign exchange (FX) trades to be made at exchange rates determined based on prevailing market circumstances.

During the FX auction on Thursday, willing buyers and willing sellers offered the highest bid of N986, weaker than N981/$1 on Wednesday and a lower bid of N700/$1, data from the FMDQ indicated.

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The naira has been in free fall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market in June.

At the parallel market on Thursday one dollar was quoted at N1,155, the lowest ever on the black market.

In some parts of Abuja, dollars traded at the rate of N1,150, in Lagos some traders sold at N1,155 and in other areas at N1,120/$1.

This implies that in less than 12 hours, the naira has depreciated by 5 percent (N55) from N1,100/$1 closed on Wednesday.

The combination of demands from 43 items restored to access foreign exchange and demands for school fees, among others, drove the sharp fall in the value of naira in two days.

On Tuesday, it slumped to 1,100 to the dollar on the parallel market, and 980 per dollar on the official market, Refinitiv data showed.