In a significant and alarming development, the Naira, Nigeria's national currency, suffered a dramatic drop to its lowest rate ever against the United States dollar in the official market. According to market data released on the FMDQ website, the local currency concluded its trading session at N848.12 per US dollar on Tuesday, marking a stark contrast from the N778.80 recorded just a day prior.
This shocking shift translates to an astonishing 8.9% depreciation from the previous exchange rate of N778.80. The day began with the Naira opening at N758.50, but as foreign exchange supply within the market surged, it slid to the closing rate of N848.12.
Tuesday's session witnessed a substantial surge in foreign exchange supply, with a reported supply of $134.8 million, marking a staggering 212% increase from the previous day's $43.09 million supply. The Naira's intraday performance showcased a high of N700.00 and a low of N981.00 before settling at N848.12 per US dollar.
At the parallel market, the Naira faced further losses. Data from AbokiFX, an aggregator of unofficial market rates in Lagos, indicated that the Naira traded at N1,050 to a dollar on Tuesday, compared to the previous session's N1,040 rate. This unfortunate trend is attributed to a dearth of dollar availability and surging demand.
The widening gap between the official and unofficial markets is a cause for concern, as it currently stands at N201.88, with the market margin reaching 24% on Tuesday. This situation raises serious questions about the Naira's stability and the impact on the country's economy
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