The Nigerian Naira experienced a dramatic decline, reaching its lowest level ever against the US dollar at N1,099.05 on Friday. This steep drop, coinciding with significant market volatility and a robust US job market report, has raised serious concerns among Nigerian residents.
The local currency experienced a historic low, plummeting to N1,099.05 against the dollar, a stark contrast to Thursday’s closing rate of N843.07 on the FMDQ Securities Exchange.
The Nigerian currency record was at 465.07 naira per dollar before Tinubu’s government came into power.
The depreciation of the naira was attributed to the US dollar’s strengthened position in the global market, with the US dollar index ending the week on a positive note. Fueled by favorable economic data from the United States, the dollar’s surge contributed to the naira’s significant loss, reflecting a drop of approximately one-third of its value.
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This downward trend in the currency’s value is further exacerbated by the lingering uncertainty in the country’s anaemic FX market. The central bank’s failure to settle outstanding foreign currency amounts from forward deals has left the naira teetering towards levels observed in the parallel market.
Despite these challenges, the black market maintained a degree of stability, with the exchanging within the range of N1200 over the weekend. This relative steadiness in the parallel market served as a temporary respite amid the broader concerns surrounding the official forex market.