The naira’s decline continues as it hits a new all-time low, closing at N1482.57/$ on the official Investor and Exporter window of the foreign exchange market. This marks a significant 9.93% drop from its previous rate of N1348.63/$. The parallel market maintains stability at N1,450/$, while the cryptocurrency peer-to-peer market sees the naira trading at N1,439.5/$ on Binance’s P2P platform.

The technical devaluation of the national currency is attributed to FMDQ Securities Exchange revising its methodology for setting the exchange rate. The aim is to address recent fluctuations and challenges in the Nigerian Foreign Exchange Market, ensuring accuracy and reliability in rate determination.

The Central Bank of Nigeria intervenes by releasing a circular on financial market price transparency, warning against inaccurate reporting and market manipulation. Despite efforts by the Central Bank and the Federal Government to boost liquidity in the foreign exchange market, the naira approaches the predicted N1,500/$ mark.

The ongoing depreciation raises concerns about potential price hikes, impacting profitability for businesses, as noted by the president of the Manufacturers Association of Nigeria, Francis Meshioye. Meanwhile, the International Monetary Fund suggests that the naira has yet to discover its fair value against the dollar, adding an element of uncertainty to the market.

Credit: Punch