*Trades at N1120, N809/$1
For the second day running, the Naira slumped on Tuesday against the American dollar at both the parallel and official markets
While it slumped to around N1120/$1 on Tuesday from the N1,025 it exchanged for at the parallel market signifying a depreciation of N95, the story at the Nigerian Autonomous Foreign Exchange Market (“NAFEM”) window was not different as the Nigerian currency slumped to N869.91/$1 on Tuesday against the N809.02/$1 recorded on Monday depreciating by N60.89.
According to FMDQ Securities Exchange — a platform that oversees foreign exchange trading in Nigeria – the greenback’s highest rate for the day was N1,100 and its lowest intra-day price was N700.
The Naira had rallied strongly for the better part of last week appreciating to about N900/$1 as of Monday, November 6, 2023, before the recent downward spiral.
Reports that the Central Bank of Nigeria (CBN) has started clearing the backlog of matured dollar obligations amounting to over $7 billion had triggered hope of the Naira’s fightback against the dollar.
Financial analysts have warned that the recent recovery of the Naira may not be sustainable in the long run following declining oil production output and lack of adequate activities in the exporting segment of the country to rake in the dollar.