Naira Under Pressure: Official Market Losses are Growing

At the Investors and Exporters window on Tuesday, the value of the Nigerian Naira fell even further in relation to the US dollar. The Naira was valued at 462,000.00 to the US dollar.

 

This indicates that the exchange value of the Naira has dropped by NGN0.39, or 0.08 percent, from what it was on Monday. The Naira was worth 461.61 dollars on Monday, but on Tuesday, it fell to 462.00 dollars.

 

The Nigerian Naira had a range of values throughout the day on Tuesday, with its greatest value of 440.00 Naira to the dollar and its lowest value of 463.00 Naira to the dollar, according to statistics accessible on the FMDQ website (where foreign exchange is legally exchanged). And it was exchanged for $462.00 per dollar at the close of the day.

 

The volume of foreign currency transacted on Tuesday dropped in the official exchange window. The volume decreased by 15.61% on Tuesday, with foreign currency dealings totaling $112.04 million as opposed to $132.77 million on Monday.

 

In the black market, the value of the naira fell even lower. This is brought on by the continuing lack of foreign currency and rising demand for it. The declining value of NGN on the black market is a sign of the nation's challenging economic situation.

 

Local currency dealers in Uyo claimed that the Nigerian NGN was being bought and sold at various exchange rates on Tuesday at the Udi street market. They said that the exchange rate between buying and selling the money was N744.00 for every dollar and N750.00 for every dollar. This is a small increase above the N743.00 to $1 exchange rate that was seen on Monday.

 

Currency traders in Abuja's zone 4 market said that on Tuesday, the dollar was being purchased for N743.00 and sold for a higher price of N745.00 or more. This shows that there is a market for the dollar and that demand is driving up the value of the dollar relative to the naira. This pattern resembles that which was seen in the Uyo market.