In a notable downturn, the naira plummeted to an unprecedented low of N1,534/$ on the official Nigerian Autonomous Foreign Exchange Market this Monday.
This marks a significant 3.93% decrease or N58 from the N1,476.13/$ closing rate of the national currency just last Friday, according to FMDQ Exchange, the platform responsible for publishing official foreign exchange trading in the country.
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Monday’s official rate now stands as the most unfavourable exchange rate since the Central Bank of Nigeria introduced the floatation of the national currency in June 2023.
Contrastingly, at the parallel market on Monday, the naira was traded within the range of N1,480 and N1,490. It seems the local currency has been consistently trading higher at the parallel market, especially following the recent revision of the methodology used by FMDQ to calculate the official exchange rate.
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The adjustment in the calculation methodology contributed to the naira’s depreciation from over 900/dollar to surpassing 1,400/dollar.
Back in December, the naira breached the N1000/$ mark on the official window. On December 8, it initially dipped to an all-time low of N1,099.05/$. Subsequently, on December 28, 2023, it closed at N1043.09/$, and by January 3, 2024, it stood at N1035.12/$. Continuing this trend, on January 9, 2024, it concluded at N1089.51/$ and N1082.32/$ on January 10, 2024. Notably, it reached an unprecedented low of N1348.63/$ on January 30, 2024, coinciding with the FMDQ’s revision of the methodology for calculating the official exchange rate.
Meanwhile, dollar sales by banks experienced a substantial 56.58% decline to $253.77 million on Friday, down from the peak of $584.53 million on Monday—the first trading day after the CBN directed banks to offload excess dollars in the official FX market.
Cumulatively, commercial banks transacted a total of $1.97 billion in the span of one week.
In Abuja, currency traders, commonly known as Bureau De Change operators, quoted the buying rate of the greenback at N1,480 and the selling price at N1,503, maintaining a profit margin of N23.
Mallam Yahu, a BDC operator in Wuse, stated, “We currently purchase within the range of N1,480 and N1,490, and we sell at N1,500 and N1,503.”
Conversely, another seller, identified as Yahaya Abdul, expressed his inability to buy beyond the rate of N1,460.
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