Naira Continues Surge, Sets Fresh Exchange Rate Record, Narrowing Black Market Gap

Naira Continues Surge, Sets Fresh Exchange Rate Record, Narrowing Black Market Gap....KINDLY READ THE FULL STORY HERE▶

The Nigerian naira hit a new historic low on Thursday, December 28, 2023, trading at N1,043.09 to a dollar, marking a significant 16.35% decline. This depreciation contrasts with the black market, where the naira saw appreciation at N1,220 per dollar. The downward trend in the naira’s value aligns with the Nigerian government’s aim to achieve an exchange rate of N700 per dollar in 2023….CONTINIUE READING

READ ALSO:https://bushradiogist.com/lps-nwokocha-expresses-shock-over-senate-sack-unraveling-the-unexpected-turn-of-events/

Notably, the naira’s volatility persisted throughout 2023, particularly following the foreign exchange reform introduced by the Nigerian government in June. This recent dip to N1,043.09 represents the second instance of the naira surpassing the N1,000 per dollar mark in the official market. In the 2024 budget, the federal government has set a new target exchange rate of N700 per dollar, as reported by Legit.ng.

Meanwhile, the parallel market witnessed a marginal appreciation of the naira, closing at N1,220 per dollar, signaling a nearing convergence with the official market. Black market traders attribute this to a reduction in pressure on the US dollar post-Christmas and New Year celebrations. According to Aliyu Umar, a trader in Lagos, the current lull in demand for the dollar is likely temporary, with expectations of increased demand resuming in January.

The latest depreciation translates to a loss of approximately N170.5 or a 16.35% decline compared to the closing rate of N872.59 on December 27, 2023. Intraday trading at NAFEM recorded a high of N1,235.65 per dollar and a low of N720 per dollar. Forex turnover at NAFEM witnessed a 34.63% decrease, totaling $83.63 million.

On a positive note, the World Bank predicts that diaspora remittances to Nigeria will exceed $20 billion by the end of 2023, providing a boost for the naira. The bank’s Migration and Development Brief, released in December, notes a 1.9% rise in total remittances into sub-Saharan Africa. The report suggests that fixed exchange rates and capital controls are redirecting remittances from official to unofficial channels.

For more information join our whatsapp group by clicking the link here: WhatsApp Group Invite