Naira Slump Deepens as Currency Falls to Record Low of N1,705 Against Dollar
The naira hit a new low on Wednesday, trading at N1,705 per dollar in Nigeria’s unofficial market, according to Bureau De Change (BDC) operators in Lagos and Abuja. In Lagos, AliyuSani, a BDC operator, confirmed that he sold dollars at N1,705 while buying at N1,695. A similar trend was observed in the capital city, Abuja, where rates were slightly lower, with dollars sold for N1,700 and bought at N1,690.
Suraju Ajao, a currency trader in Abuja, echoed these figures, confirming that dollars were being sold for N1,700 while being bought at N1,690.
On the Nigerian Autonomous Forex Exchange Market, hosted by FMDQ Securities, the naira closed trading at N1,659.69 per dollar—marking a marginal depreciation of 0.04% from its previous day’s rate of N1,658.97. Official market rates showed the naira trading as high as N1,682 per dollar, with a low of N1,562.97. Daily turnover also dipped significantly, falling from $217.86 million on Tuesday to $177.10 million.
Monday saw the naira slide to N1,700 per dollar, a 0.29% decline from the previous Friday’s rate of N1,695. This steep depreciation has contributed to the naira’s ranking as one of Sub-Saharan Africa’s worst-performing currencies in 2024, according to the World Bank.
As of August, the naira had depreciated by 43% year-to-date, placing it among the weakest currencies in the region, alongside Ethiopia’s birr and South Sudan’s pound. This continuous decline is primarily attributed to escalating demand for U.S. dollars in Nigeria’s parallel market, coupled with limited dollar inflows and sluggish foreign exchange disbursements by the Central Bank of Nigeria.
