Nigerian naira weakens against dollar despite speculation of recovery
2023.11.08 05:29
© Reuters
The Nigerian naira experienced a significant depreciation against the US dollar in the forex markets and the parallel market on Tuesday. According to data from FMDQ Securities Exchange, the naira fell from its previous day rate of 780.09 to an end-of-day rate of 809.2 per USD. The parallel market rates fluctuated between N1,030 and N1,100 per USD, with Binance P2P trading it at N1,020 per USD.
On the same day, the naira also fell by 7.53 percent in the investors and exporters (I&E) window to close at N869.91. The dollar’s highest and lowest intra-day rates were N1,100 and N700 respectively. This depreciation happened despite earlier signs of the naira’s recovery and coincided with a surge in demand for dollars.
The naira’s decline was even steeper in the parallel market, where rates surged from N1,025 to N1,120 per dollar as verified by Bureau De Change (BDC) operators.
Despite these developments, Tope Fasua, Economic Adviser to President Tinubu, expressed confidence in the central bank’s policies and President Tinubu’s administration during a book launch event in Abuja. He issued a speculation warning and forecasted a surprise appreciation of the Naira to approximately 600 Naira per USD in the near future.
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