Again, Naira Plumet Against US Dollar At Official Market

Nigeria’s currency, the Naira, experienced a significant drop to a new all-time low of 1,534.39 per dollar at the official foreign exchange (FX) market due to increased demand and a shortage on Monday.

Data from the FMDQ revealed that after trading on Monday, the Naira lost 4.19% of its value, with one dollar being quoted at N1,534.39 compared to N1,469.97 on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Furthermore, the Naira depreciated by 1.33% in the parallel market, commonly known as the black market. On Monday, the dollar was traded at a rate of N1,505, whereas it was N1,485 on Friday.

The current exchange rate has once again resulted in the official market value of the Naira surpassing the black market rate by N29.

The International Monetary Fund’s (IMF) latest country report predicts a significant decline in Nigeria’s foreign reserves, projecting them to plummet to $24 billion by 2024. This prediction has raised concerns about the economic prospects of Africa’s largest economy, indicating potential challenges on the horizon.

As of February 8, 2024, Nigeria’s foreign currency reserves have dropped to $3.11 billion, based on the information obtained from the Central Bank of Nigeria’s (CBN) website.

The CBN has recently released a circular on January 31, 2024, which introduces updated guidelines that impact inbound money transfers to Nigeria. These revised directives impose strict limitations on International Money Transfer Operators (IMTOs) and seek to enhance the oversight of funds entering the country.