Naira to Dollar Black Market Exchange Rate Today: Naira Crashes to Over N1,600
The Nigerian naira has crashed beyond N1,600 against the US dollar in both the official and black market exchange rates, highlighting ongoing concerns over Nigeria’s economic stability. Despite recent interventions by the Central Bank of Nigeria (CBN) to stabilize the currency, the naira continues to face significant pressure in the foreign exchange markets.
Naira Depreciates in Official Market, Holds Steady in Black Market
Latest data shows the naira depreciated by 0.77% in the official market while remaining stable in the black market. According to FMDQ Securities, the naira closed at N1,606 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, August 28, 2024. This represents a 0.86% decline or N28.34 depreciation from Tuesday’s closing rate of N1,594.27 per dollar.
The naira’s recent dip comes as the CBN struggles to address the high seasonal demand for foreign exchange (forex) from Nigerians and businesses. The apex bank’s recent intervention has so far done little to curb the continued depreciation.
Slight Improvement in FX Transactions Volume
Despite the naira’s depreciation, there was a slight improvement in the volume of forex transactions, which rose by 5.1%, or $4 million, to $160.94 million from $156.94 million recorded in the previous trading session. This uptick suggests that while the naira is under pressure, there is still some level of market activity.
Naira Exchange Rate to Pound and Euro
The naira also weakened against the pound sterling and the euro in the spot market at midweek. Against the pound, the naira fell by N11.87 to close at N2,116.69/£1, compared to Tuesday’s rate of N2,104.82/£1. Similarly, it declined against the euro by N5.46, settling at N1,782.62/€1 from the previous day’s rate of N1,777.16/€1.
Naira in the Black Market Remains Unchanged
In the unofficial black market, the naira remained unchanged against the US dollar, trading at N1,615 per dollar. According to traders, the naira held steady despite the volatility in the official market.
CBN’s Recent Report on Forex Consumption
A recent quarterly statistical bulletin from the Central Bank of Nigeria (CBN) indicated that forex consumers in Nigeria utilized more US dollars in the three months ending December 2023 compared to the previous quarter. The report suggested that inflows were likely to come from various sources, including World Bank budget financing, NNPC-related flows, and Eurobond issuance.
Continued Concerns for the CBN
The free fall of the naira remains a major concern for the CBN as it continues to battle multiple economic challenges. Despite efforts to stabilize the currency, including interventions in the forex markets, the naira’s performance suggests that more aggressive measures may be needed to arrest its decline and stabilize Nigeria’s economic outlook.
