• Offical rate now N999/$1
Nigeria’s naira hit a new record low of N999 per dollar on the official market on Thursday, October 19, 2023, Refinitiv data showed, in line with weakness on the parallel market as dollar shortages continued to put pressure on the currency.
The naira has been in free fall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market in June.
On Tuesday, it slumped to 1,100 to the dollar on the parallel market, and 980 per dollar on the official market, Refinitiv data showed.
Meanwhile, the naira hit a record low of 1,155 per dollar on the black market on Thursday, as it depreciated sharply by 5 per cent from N1,100 per dollar it was on Wednesday.
The online platform abokiFX showed the new rate, a day after the currency hit a new low on the official market due to persistent dollar shortages, while in some parts of Abuja, dollars traded at the rate of N1,150, and some traders sold it at N1,155 per dollar in Lagos, and in other areas at N1,120/$1.
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Forex analysts have said that much pressure was put on dollars as demands became high as a result of the 43 items restored to access foreign exchange and demands for school fees, among others, which caused the sharp fall in the value of naira in two days.
The naira has been in freefall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market.
Before Thursday, the unit fell to a record low of 980 naira to the dollar on the official market on Tuesday.
The central bank has said it will intervene in the foreign exchange market occasionally to boost liquidity, after last week ending an eight-year ban on some items that were restricted from accessing dollars on the official market.
Last month, the currency slid past 1,000 naira per dollar on the black market and continued to weaken as excess dollar demand was funnelled into the informal market from the official market.
