On October 19th, 2023, the exchange rate between the Nigerian Naira and the US Dollar witnessed a historic low, reaching N999/$1 during intraday trading. This data was sourced from the FMDQ, which serves as the official platform for foreign exchange trading through the Nigerian Autonomous Foreign Exchange Market (NAFEM).
It’s worth noting that this intraday high may undergo further fluctuations, potentially closing at a lower rate as the trading day progresses.
However, in the alternative market, such as the black market P2P (peer-to-peer), where foreign exchange is unofficially traded, the exchange rate displayed a stark contrast. Reports from P2P trading indicated an exchange rate as high as N1,152/$1, highlighting a persistent trend of devaluation.
The final closing exchange rate data reported by the FMDQ NAFEM revealed that the closing rate stood at N782.68. This figure indicated a continuation of the appreciation trend observed a day earlier, where the exchange rate fell to N848/$1. This drop marked the largest single-day decline ever witnessed in the official market.
In contrast, the intraday low recorded was N701/$1, and the daily turnover amounted to $97.47 million.
A check on P2P websites later in the day unveiled exchange rates quoted as low as N1,170, further emphasizing the instability and uncertainty surrounding the Naira’s value.
Notably, earlier in the week, the Central Bank of Nigeria (CBN) had announced a significant shift in the terminology employed within the Nigerian Foreign Exchange (FX) market, an essential part of its strategy to establish a unified exchange rate market.
These developments underscore the ongoing challenges faced by the Naira in the foreign exchange market, with multiple rates and continued devaluation, posing significant economic implications for Nigeria.
