The exchange rate between the naira and dollar hit an all-time low of N999/$1 during trading on October 19, 2023.
In a significant development, Nigeria witnessed an unprecedented drop in its currency value, as the exchange rate between the naira and the US dollar hit an all-time low of N999/$1 during trading on October 19, 2023.
This alarming situation was reported based on intraday trading data from the FMDQ, where forex is officially traded through the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The N999/$1 rate is an intraday high, and market analysts predict that it may close at an even lower rate when the market concludes its trading activities for the day.
In addition to the official forex market, a worrying trend is also evident in unofficial trading. In early afternoon trading on the black market known as P2P, where forex is exchanged informally and often involves cryptocurrencies, the exchange rate surged to N1,152/$1. This sharp increase underscores the ongoing and steady depreciation of the naira.
This is a continuation of a trend that has been affecting Nigeria. Just a day prior, the naira had already depreciated to N1,100 to the US dollar on the parallel market, while the official market rate stood at N790 per dollar. The steady decline in the value of the naira against the US dollar poses significant economic challenges for Nigeria and its citizens.