Naira on Monday fell to a record low of N1,348.63 per dollar following strong demand on the official market, also known as NAFEM market.

This is despite the news of additional release of 500 million dollars to various sectors in its determination to address the backlog of verified foreign exchange transactions by the Central Bank of Nigeria (CBN).

This represents 33.87% or N456.73 weaker than N891.90 recorded at the close of trading on Friday.

The observed depreciation is unparalleled and stands as the lowest point in the historical performance of the Naira, reflecting the severity of the current economic challenges.

Sixth time Naira crossed the N1,000/$ threshold 
 This latest depreciation marks the sixth time the Naira has breached the N1,000/$ threshold, highlighting a persistent trend of weakness. 

The first instance occurred on Friday, December 8th, 2023, when the currency reached a historical low of N1,099.05 per dollar. This was followed by a brief reprieve before a second depreciation on Thursday, December 28th, 2023, closing at N1,043.09 per dollar. 

These developments represent a significant turning point for the Naira. 

 Despite recent efforts by the Central Bank of Nigeria (CBN) to bolster the foreign exchange market through interventions, the currency’s downward trend persists, prompting concerns about its potential impact on the broader economy. 

This development is likely to aggravate existing inflationary pressures and further strain household budgets, particularly for those reliant on imported goods.  

The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.  

The domestic currency depreciated by 33.87% to close at N1,348.63 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed. 

-This represents an N456.73 loss or a 33.87% decline in the local currency compared to the N891.90 it closed on Friday.  

-The intraday high recorded was N1414.94/$1, while the intraday low was N701/$1, representing a wide spread of N713.94/$1.  

-According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $64.29 million, representing a 36.33% increase compared to the previous day.  

However, the naira depreciated at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 2.76%, quoted at N1,450/$1, while peer-to-peer traders quoted around N1,466.20/$1. 

What you should know
Nairametrics reported that the Central Bank of Nigeria (CBN) said that it has released 500 million dollars to various sectors in its determination to address the backlog of verified foreign exchange transactions.

Mrs. Hakama Sidi-Ali, CBN’s Acting Director of the Corporate Communications Department, said this in a statement on Monday in Abuja.

According to the News Agency of Nigeria (NAN), Sidi-Ali said this comes barely a week after the apex bank paid approximately 2.0 billion dollars to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.

She said that the management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.

A comprehensive strategy to improve liquidity
She said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms.

“As the Governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she said.

Sidi-Ali said that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.

She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

She urged all participants in the market to play by the rules, adding that transparency in the market would enable the fair determination of exchange rates.

https://nairametrics.com/2024/01/29/naira-hits-record-low-of-n1348-63-1-at-the-official-market/?amp=1

Despite the release of half a billion us dollars, the naira continues to crash.

I said here few months that even if tinubu hires angels in this land desecrating mandate, nothing good will come out.

With the way it is now, dollar will hit 2000.
It might even cross over to the year figure digits of 2024.

Tinubu is operating on a cursed mandate. His criminal desecrating desperation mandate has brought dearth on the land.

If Tinubu is patriotic, himself and shettima will resign and run away.

The evil mandate people will blame it on

1. Ipob

2. Atiku

3. Pdp ( except wike)

4. Obi

5. Nigerian Masses

6. Binance

The only one they won't blame is themselves

A failed leadership blames others except itself

Nawa
Una no go kii us

Hahahaha!

Babaa, see chart topping & breaking!
or I should say, 'breakin & enterin & shatterin!'

Unprecedented 100-100!

Mr. Olu 4 our drinking joint 4 area wey dey always shout , "Baba tinubu is d best, baba tinubu is d best!" pesin wey dey always frequent wit one-one bottle of beer every evening, na last December 2023 we see am last 4 d drinking joint!

lemme be nodding head on d mandate instead!
✌️😂

I tot ..i read CBN paid $500 million to offset Nigeria debt...

Pls go after ,.. persons causing this inflation and causing undue hardship to Nigerians..

Abomination! From frying pan to fire!

Aboki sold today at 1,430

I even hear sey #1,700 loaf of bread dey sef

Alright
Where is Tinubu self

Let the shege continue abeg... Na only the strongest and smartest deserves to survive the great Tinubulation. Maybe after hell has razed over, the few wey remain go get the sense and will to push the reset button. Till then....

Oya quick borrow more dollars to stabilize the naira

Find way to get dollars o

If na Yahoo sef run am, just make sure get dollars somehow.

If not you won't be able to afford a loaf of bread very soon

Sapa moti pe o I no even know wetin e mean sha

Okay na, before if we talk all them agbad0rians go shout say na black market . . . Parallel market . . . BDC . . .abokiFX . . . lol

So helep me ask them wetin we go call this kind market now? Na BAD MARKET na him apc batists don force nigerians buy so

Emilokan nyash don open finish breeze turn to hurricane dey blow am

Modified: someone should help us translate what the vulture griller and his alternate account (Eriggs) are saying in the comment section below. We always knew he was shameless but for him to be this tribalistic is a new low let's keep him in our prayers fam, he definitely needs it.

This is really getting annoying what sort of nonsense is this? Is this man being intentionally wicked 😡😡😡

The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.  
The solution is addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years and encouraging local productions of goods.

On his mandate, they shall stand...
On his mandate, they shall stand...
On his mandate...
On his mandate...
On his mandate, they shall stand!

Enjoy your votes!

Japa how far na. me and you be get one on one discussion na

Baba Chicago insulted Buhari and his cabinet saying, "they don't don't have sense" and that was why Naira was depreciating.

Tntsi:

Tinubu is operating on a cursed mandate. His criminal desecrating desperation mandate has brought dearth on the land.

If he is patriotic, himself and shettima will resign and run away.

Will you keep shut there and mechionu.
He should run away and give the position to you obi fraud and terrorist supporter abi?
Wailers and losers

DMerciful:
The solution is for the undisputed heavyweight champion of incompetence Tinubu to resign

He should run away and give the position to you obi fraud and terrorist supporter abi?
Wailers and losers

Pounds Don pass#1800 on lemfi and taptap. Now to send money to people in naija takes nothing from me. 260k self no pass 150£. All thanks to bulaba

ThubV has done it again..

Nemere2020:


https://nairametrics.com/2024/01/29/naira-hits-record-low-of-n1348-63-1-at-the-official-market/?amp=1

Our darling daddy is working tirelessly to build the country to American standard

Elo fi okan bale

1dollar will heat 5k pretty soon and our head wa no won correct go normal by force.

What happened to the Forex Backlog the cbn released $500mil to clear?

We will keep watching...

Balablu bhlu bhlu bulaba gazelle gragra

scally11:
Pounds Don pass#1800 on lemfi and taptap. Now to send money to people in naija takes nothing from me. 260k self no pass 150£. All thanks to bulaba

Guess that is good for you but bad....very bad for your people back home.

post=128190992:
The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.  
The solution is addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years.

na statistics we go chop?

Tinubunomics

MichaelSokoto:

.

You are telling a nairalander Bleep you? Cos you know there is no consequences for your uncouth and unruly online behavior
No be ur fault, this is what you and your fellow ip0bs have turned nairaland to.
Continue ooo

Na statistics we go chop?

You cannot give what you don't have and you cannot rule with propaganda!