February 27, 2024

Naira Hits Record Low, Falls to N1,534 Per Dollar Amid Rising Demand

 

 

By: Emmanuel Ibitoye

Nigeria’s currency, the naira, experienced a historic low, reaching N1,534.39 per dollar at the official foreign exchange market due to increased demand and shortages. The naira’s value depreciated by 4.19% on Monday, as compared to Friday’s rate of N1,469.97 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to FMDQ data.

Simultaneously, the naira devalued by 1.33% at the parallel market, trading at N1,505 per dollar on Monday, compared to N1,485 on Friday. This development widens the gap between the official and black market rates by N29.

Concerns about Nigeria’s economic prospects have risen following a projection by the International Monetary Fund (IMF), indicating a notable decline in the country’s foreign reserves to $24 billion by 2024. As of February 8, 2024, Nigeria’s foreign currency reserves have already decreased to $3.11 billion.

The Central Bank of Nigeria (CBN) has implemented revised guidelines for inbound money transfers, introducing stringent restrictions on International Money Transfer Operators (IMTOs) to regulate fund inflows more closely. These developments raise concerns about potential economic challenges for Africa’s largest economy.

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