The naira has crashed to N1,099.05 per dollar on Friday at the official foreign exchange window, bringing it closer to the rate traded at the parallel market.
Analysis of data on the FMDQ conducted by THE WHISTLER showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira opened trading on Friday December 8, 2023, at the price of N844.1 per dollar.
But following demand pressure, the currency lost 30.2 per cent of its value to settle at N1099.05 per dollar.
During the trading session on Friday, the naira recorded the highest daily price of N1186 per dollar, while the lowest price traded was N644 per dollar.
This has resulted in a level of convergency between the official rate and the parallel market rate which fell by N15 from N1180 to N1,195 per dollar on Friday.
The Central Bank of Nigeria (CBN) began a managed float of the foreign exchange on June 14 and had since stepped-up efforts to sanitise the foreign exchange market after the naira nearly traded above N1,500 per dollar at the black market controlled by the Bureau de Change Operators.
The CBN Governor, Olayemi Cardoso, said that the regulator will introduce a new foreign exchange guideline for banks and BDCs to save the naira from speculators.
However, the Federal Government, in its 2024 budget proposal, highlighted that it hopes to moderate the currency to trade at N750 per dollar at the official window.
The CBN and the fiscal authorities in Nigeria are of the opinion that the fair value of the naira is between N650 and N750 per dollar.
Naira Crashes By N255/$ In A Single Day At Official Window, As Currency Nears Convergence With Parallel Market is first published on The Whistler Newspaper