The parallel market exchange rate has experienced a substantial decline, reaching a low point of N2050 per Great Britain Pound (GBP), reflecting persistent demand pressures that have contributed to the erosion of the currency’s value.

This signifies a significant decrease of 7.32% or N150 compared to the rate of N1,900 recorded the previous day.

Simultaneously, as of 11:54 am on Tuesday, black-market exchange rates have continued to undergo devaluation of the Nigerian Naira.

Despite the Central Bank of Nigeria’s (CBN) concerted efforts to enhance foreign exchange (forex) supply through various policy interventions, challenges persist within the forex market.

Similarly, the Naira depreciated against dollar in the parallel forex market, where forex is unofficially traded, with the exchange rate quoted at N1,630/$1, reflecting a 1.84% decrease from the N1,600 rate it closed at the previous day.  

Additionally, the Naira weakened against the Euro by 0.57%, trading at N1750/EUR1 compared to N1740/EUR1 reported the previous day. 

Factors Influencing the Depreciation
Market analysts attribute the recent decline to a consistent surge in demand for dollars that has been evident since the commencement of January. The primary contributors to this heightened demand include: 

A substantial portion of the demand is attributed to businesses actively seeking to restock goods or acquire raw materials, necessitating a higher demand for foreign exchange. 

Individuals pursuing overseas studies have also played a significant role in driving the demand for dollars. This trend is likely connected to the need for tuition payments and related educational expenses. 

Nairametrics reported recently that financial analysts are advocating for a re-evaluation of policies to safeguard the Nigerian Naira amid escalating forex rates, despite efforts by the Central Bank of Nigeria (CBN) to stabilize its value.

The recent decline in the Naira’s value across official and parallel markets has prompted suggestions from financial experts to mitigate currency volatility and prevent further depreciation.

The CBN had announced a series of measures aimed at enhancing transparency and stability in the foreign exchange market while addressing malpractices.

However, while the analysts acknowledge the positive aspects of the CBN’s recent policies aimed at managing pressures in the foreign exchange market, they highlight that these measures fail to directly address the fundamental issue of limited supply.

Analysts interviewed by Nairametrics in response to the Naira’s sharp decline following exchange rate harmonization propose reassessing the government’s foreign exchange management strategy.

They advocate for shifting towards a managed float system to allow flexibility in implementing initiatives to bolster foreign exchange reserves, such as boosting oil production, enhancing agricultural exports, and incentivizing foreign remittances.

https://nairametrics.com/2024/03/05/breaking-naira-depreciates-by-7-32-to-n2050-against-great-british-pound-at-the-black-market/

The exchange rate has experienced a substantial decline, with the Naira weakening to N2050 per Great Britain Pound (GBP).

N2050 is not a record low.
There was a time it was more than 2,300naira for a pound

After fighting binance. The brainless FG will soon blame the air we breath for their failure. Se na only naija dey use binance. Why is their currency not crashing

1.Reduce inflation
2.Fix the economy
3.Bring back good security to the country
4. Reduce inconsistency in government policies
5. Genuinely fight corruption ( I forget say the head himself is corruption personified. Spit)
6. Stop printing naira indiscriminately
7. Genuinely support local producers
8. Genuinely finance and monitor farmers
9. Roads and power should be a priority
10. OPEN BORDER for food to enter for a short time succour. People are hungry. But I know they really want the people to be hungry so that during election time they can give out 500 naira to buy vote

These among many

Ok

I have said it countless times and even now. Buy as much dollars as you can now, buy the dip on naira cos 2000/$ approaching.

https://www.nairaland.com/8018607/buy-dip-naira-now-1800


What do you expect from a clueless government going around in circles confusing ignorant Nigerians (not me) and leaving the main problem untouched?




Regardless, forget Binance and lets help you convert your crypto funds to any foreign currency you need.

https://www.nairaland.com/8015684/withdraw-crypto-coins-skrill-funds-naira

Watapun? I thought they said it recovered?

All these 1-2 days off of epileptic fall and rise is not the way forward, we know very soon the naira will so fall to the extent that the pound, will be 5k as against naira, so the federal government should start doing things right...

Let's blame Binance

Binanace delisting the NGN from its platform will only strengthen the NGN temporary.

Amotolongbo:

N2050 is not a record low.
There was a time it was more than 2,300naira for a pound

I didn't see where the paragraph you quoted stated it was "a record low"

Abeg no confuse person

Dollar is diff from pounds

Some are already mixing it up and you know alm these markets women they will start increasing prices thinks it dollars

Hmm
These people will soon blame YouTube & Facebook for naira fall

Na CBN and banks dey cause inflation.

When will prices of goods and services start coming down & become more affordable?

That's what matters most to the average Nigerian.

They said Binance is their problem

Tinubu hehe. U are a joker and a mediocre

pand stahlin

I need one of y’all British niggas to send me some stahlin 👀

Amotolongbo:

N2050 is not a record low.
There was a time it was more than 2,300naira for a pound

so should we celebrate because it has not hit the record low?

Dreamhighnow:
After fighting binance. The brainless FG will soon blame the air we breath for their failure. Se na only naija dey use binance. Why is their currency not crashing

1.Reduce inflation
2.Fix the economy
3.Bring back good security to the country
4. Reduce inconsistency in government policies
5. Genuinely fight corruption ( I forget say the head himself is corruption personified. Spit)
6. Stop printing naira indiscriminately
7. Genuinely support local producers
8. Genuinely finance and monitor farmers
9. Roads and power should be a priority
These among many

Someone said the govt is arresting people in the system instead of arresting the system.

When the head is bad u can never get anything right. It's as simple as that

Why's there still black market rate if the reason for floating the naira was to prevent black market rates

GanagiBitrus:

When will prices of goods and services start coming down & become more affordable for the average Nigerian?
That's what matters most.

It'll go down only when our govt subsidises goods and services or we meet the prices by increasing minimum wage.
Nigeria is a CAPITALIST country, prices of things in need can NEVER go down on its own. No Capitalist like Dangote who likes maximum profit will ever reduce price of salt because you're going through rough time lol

Knowing Nigerian govt, they'll never do anything. We'd have to either wait for competition or everybody just somehow gets use to working like slaves.

I thought Binance p2p got banned because they're the cause of naira depreciation... What's causing now?

Maybe Pounds and dollars should be banned from existence so naira will appreciate.

I see a lot of persons Applauding Tinubu Government for the recent naira gain against dollar.
It shows we don't understand why Naira will never stop depreciation.

Nigeria is a dependent country.
Any country that imports 80% of their basic needs will face high level of currency depreciation. This is the case of Nigeria. We import almost everything we use. Gas, Rice, electronics, fish, some food, gadgets, raw materials etc. And we do not export. We don't have a balanced structure here of import against exports.

The demand for dollar is high and will continually go higher.
A lot of businesses import their goods. They need dollars.
A lot of Nigerians now want to study abroad or japa. They need dollars
Even Dangote recently announced that he will start importation of crude oil. Demand for more dollars.

It's a simple economic problem. When Demand is higher than supply it results to scarcity and inflation. Scarcity results to sporadic inflation.

Look around you. 6yrs ago, how many persons do you know who went abroad or japa. Very few or none.
But now, within the last 4yrs you probably know a lot of persons who relocated abroad or either schooling there.

Can you boldly point out 4 persons who relocated from other countries to Nigeria? Or come school here?
Thereby converting their currency to Naira.

Stop expecting dollar to depreciate.
Whatever they (government) are doing now is a short term solution.

The only solution is to fully repair the country by Increase production, manufacture, exportation, reduce demand and most importantly to increase available jobs.

APC should blame Binance as usual.

Xwizard:
Something is not right in this country



Used 2003 EOD Available for sale

Asking price 2m
Buy and drive, working perfect

you go accept payment in bitcoins 👀

One thing is clear now.
The problem with our economy is the conflict between theory economics and practical economics.

Virtually all economists in Nigeria were saying the govt should float the Naira. Consequence comes now and everybody don mechonu

Nairaland no dey shame... Una don leave dollars go pounds?

Is binance still the problem

Dreamhighnow:
After fighting binance. The brainless FG will soon blame the air we breath for their failure. Se na only naija dey use binance. Why is their currency not crashing

1.Reduce inflation
2.Fix the economy
3.Bring back good security to the country
4. Reduce inconsistency in government policies
5. Genuinely fight corruption ( I forget say the head himself is corruption personified. Spit)
6. Stop printing naira indiscriminately
7. Genuinely support local producers
8. Genuinely finance and monitor farmers
9. Roads and power should be a priority
These among many

Opening the border for food importation is the only magic that can turn things around for the naira. It sounds crazy but which of all the Cambridge economics has impacted positively on the Naira?
The stone the builders rejected is the chief corner stone we kept ignoring

Dreamhighnow:
After fighting binance. The brainless FG will soon blame the air we breath for their failure. Se na only naija dey use binance. Why is their currency not crashing

1.Reduce inflation
2.Fix the economy
3.Bring back good security to the country
4. Reduce inconsistency in government policies
5. Genuinely fight corruption ( I forget say the head himself is corruption personified. Spit)
6. Stop printing naira indiscriminately
7. Genuinely support local producers
8. Genuinely finance and monitor farmers
9. Roads and power should be a priority
These among many

Everyone knows these.
Easier said than done.
Which government doesn't know that it should fix the economy?
Is this one not trying to fight inflation?
Everyone knows we should support local businesses.

Copy and paste theory.