November 10, (THEWILL) – The Naira traded N996.95 per dollar on the Nigerian Alternative Foreign Exchange Market (NAFEM) on Thursday, November 9, pushing closer to the parallel market rate of N1,175/$ on the same day.
The massive slump of the Naira was the worst on the official forex window since the local currency was floated on June 14, 2023.
The closest depreciation prior to Thursday’s unprecedented slide was October 30, 2023 when the weakening currency traded N993.82/$.
The government has said it is determined to close the wide gap between the official and parallel market rates through improved liquidity thereby sending the street currency dealers (also called the black market) out of business.
The black market dealers have often been accused of sabotaging the government’s policies towards strengthening the Naira.
Unlike Wednesday’s rate of N874.71/$ when the gap was about N295, or 25 percent, Thursday’s gap shrank by 15 percent to N179 with N996.75/$.
What stood out on Thursday’s trading was the unprecedented dip in the Naira against high turnover of $228.54 million unlike in the previous days when the Naira strengthened on higher turnover.
At Thursday’s N996.75/$, the Naira has depreciated by 111 percent against N471.67/$ the local currency traded on June 13, 2023 before the forex reform.
Some Lagos black market traders who spoke with THEWILL said the pressure on the Naira remained intense as demand for the dollar far outstripped supply, and worsens on a daily basis.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
