See more as naira crashes by over N100 in hours against US dollar

• The naira has reversed its gains as it started the new week, following a sharp decline recorded on Tuesday in the official market
• There was also a reversal in the unofficial market, with the dollar appreciating in value later in the day
• The latest exchange rates have dashed hopes for a stronger performance by the naira in the foreign exchange markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian currency, the naira, has reversed its gain recorded on the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

New data from the FMDQ Securities Exchange showed that the naira depreciated to N1,658.97/$1 at the close of trading on Tuesday, October 15, 2024.

Nigerian currency depreciates against US dollar Photo credit: Bloomberg/contributor
Source: Getty Images

Tuesday's exchange rate is N106.05 or 6.8% depreciation when compared to the previous exchange rate of N1,552.92/$1.

This happened as FX turnover at the spot market went down by $125.85 million or 36.6% to $217.86 million from $343.71 million on Monday.

Naira against other currencies

According to data from the Central Bank of Nigeria, Nigerian currencies remained stable against the British pound and the euro on Tuesday.

The naira traded flat against the pound sterling and the euro in the official market, selling at N2,089.62/£1 and N1,749.12/€1, respectively.

In the parallel market, also known as the black market, the naira reversed its earlier gains recorded during morning trading.

By the end of Tuesday, traders had pushed the naira down to N1,700, just hours after it traded at N1,660.

CBN hopes for new naira-to-dollar exchange rate

Earlier, Legit.ng reported that the CBN revealed that Nigeria's foreign reserves had recorded an increase.

This came after the successful $500 million dollar bond issuance, which signifies investor confidence.

The increase would come as a welcome development for the Central Bank of Nigeria in its fight to help the naira recover in the foreign exchange market.

Shortage of forex supply has always been a major reason the naira has come under intense pressure in both the black and official markets.

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Source: Legit.ng