The Nigerian Autonomous Foreign Exchange Market witnessed a historic low on Monday as the naira plunged to N1348.63 against the dollar, marking a staggering 51.21% drop from its previous close at N891.90/$ on Friday, according to FMDQ Securities Exchange data.
This new low represents the worst official exchange rate since the Central Bank of Nigeria’s decision to float the national currency in June 2023. Efforts by the Central Bank of Nigeria and the Federal Government to enhance liquidity in the foreign exchange market have proven futile in stemming the steep depreciation of the naira against the dollar. The currency’s decline persists, underscoring significant challenges in stabilizing the exchange rate.
The parallel window of the foreign exchange market reflects similar distress, with Bureau de Change Operators reporting a further dip in the naira to N1,450/$ by the close of trading on Monday, compared to N1,420/$ on Friday. This persistent decline exacerbates economic concerns and undermines consumer purchasing power.
The ongoing devaluation of the naira is poised to have adverse effects on the prices of goods and services across the nation. Manufacturers have already hinted at potential price hikes in response to the volatile exchange rate, signaling potential inflationary pressures in the market.