Naira Falls To Record Low, Exchange At N1,534/$
Yinka Olajoyetan, Lagos
The exchange rate between the Naira and Dollar closed at N1,534/$1 on the official NAFEM market on Monday, February 12th, 2024.
This is the weakest ever the Naira has fallen against the Dollar at closing on the official market.
The intra-day high and low also hit N1,550 and N1,000 against the Dollar as Nigeria continues to slide on the back of Central Bank bank reforms towards a free market exchange rate.
The forex turnover during the day was $89 million, the lowest so far in February. On the parallel market where the exchange rate is trading unofficially, BDC operators quoted between N1,490 to N1,550.
This significant decline, amounting to 4.19% or N64.42 weaker than Friday’s closing rate of N1,469.97, underscores growing concerns regarding the currency’s trajectory.
The unprecedented depreciation observed marks the lowest point in the historical performance of the naira, highlighting the severity of the prevailing economic challenges.
Despite recent efforts by the Central Bank of Nigeria (CBN) to bolster the foreign exchange market through interventions, the currency’s downward trend persists, prompting concerns about its potential impact on the broader economy.
This development is likely to aggravate existing inflationary pressures and further strain household budgets, particularly for those reliant on imported goods.
The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability