On Friday, January 12, 2024, the Nigerian naira experienced a decline against the US dollar, both in the official and unofficial markets.
Official forex trading data from NAFEM revealed a noteworthy depreciation of N15.75 in the naira compared to its Thursday closing rate of N874.79.
Analysts attribute the weakening of the naira to a combination of factors, including heightened demand for foreign currency and ongoing concerns regarding Nigeria’s oil production and global economic uncertainties.
At the close of business on Friday, the official exchange rate at NAFEM indicated a 1.8% depreciation of the domestic currency, settling at N890.54/$1. This marks a N15.75 loss or a 1.8% decline compared to the previous day’s closing rate of N874.79.
Simultaneously, in the parallel forex market where unofficial trading occurs, the naira depreciated by 1.19%, quoted at N1260/$1. Peer-to-peer traders quoted a slightly higher rate at around N1268.05/$1. These developments underscore the challenges faced by the Nigerian currency in the face of various economic factors.