Nigerian Naira Hits Record Low Against Major Currencies
Downward Trend Persists Despite Regulatory Efforts
The Nigerian Naira continued its downward trend against major currencies, reaching a record low on Monday. Despite efforts by the Central Bank of Nigeria (CBN) to manage the currency value, the Naira’s depreciation persisted.
High Demand Drives Exchange Rate Higher
According to Aboki FX, the Naira started the day at an exchange rate of N1,200 per dollar in the unofficial market but rose to N1,205 per dollar by noon due to high demand for the currency. This followed a closing rate of N808.27 on Friday at the FMDQ market, as reported by Bureau De Change Operator Dayyabu Mistila.
Depreciation Against British Pound and Euro
In addition to the US dollar, the Naira also depreciated against the British Pound and Euro. The buying and selling prices for the Naira to pound started at N1,380/£ and N1,390/£ respectively, increasing to N1,430/£ and N1,450/£ within hours. Similarly, the Euro opened with buying and selling prices at N1,180/€ and N1,190/€, which rose to N1,230/€ and N1,240/€ by noon.
Analysts Attribute Fall to Various Factors
Analysts attribute the continuous fall in the value of the Naira to demands from the 43 items that were recently allowed access to foreign cash, as well as school fees and other factors. The Association of Bureaux De Change Operators of Nigeria (ABCON), led by Aminu Gwadabe, denied involvement in the Naira’s depreciation and instead blamed unlicensed forex dealers for engaging in speculative activities.
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