Naira Depreciates Further Against Dollar, Hits N950 at Black Market

The Nigerian naira’s downward trajectory against the US dollar continued as it reached a new low of N950 to a dollar in the black market, marking a depreciation of N53 or 5.9 percent compared to its earlier trading rate of N897 within the week.

Bureaux De Change (BDC) operators in Lagos attributed the increase to a surge in foreign currency demand in the informal market. Street traders, commonly referred to as ‘abokis,’ are reportedly buying the dollar at N935 and selling it for N950, thereby earning a profit margin of N15.

Currency traders in the Agbara area of Ogun state disclosed that they are buying the naira at N920/$ and selling it at N940/$, showcasing the scarcity of the dollar. Despite the rising rates, people are still looking to purchase foreign currency.

The investors and exporters (I&E) window also experienced depreciation as the naira weakened by 3.28 percent against the dollar, closing at N782.38/$. This rate fluctuated throughout the trading session, reaching a peak of N800/$ before settling.

The I&E window recorded trades totaling $60.26 million on Wednesday.

Notably, in June, the Central Bank of Nigeria (CBN) introduced reforms that brought significant changes to the foreign exchange market. These reforms included unifying all segments of the forex exchange market and reintroducing the “willing buyer, willing seller” model at the I&E window. Since then, the naira has faced ongoing fluctuations in the official window and sharp depreciation in the parallel market.

Analysts and experts have predicted that the Nigerian government might take measures to regain control over the exchange rate, amid concerns about the naira’s continued loss of value against the dollar.