New Low for the Naira
On Friday, the naira weakened further, hitting ₦1,590 per dollar in the parallel market. This drop resulted from a persistent shortage of dollars.
The last time the naira fell to this level was February 16, 2024, according to data from street traders and online currency tracking platforms. Compared to Wednesday’s rate of ₦1,585 per dollar, the local currency lost ₦5 in a single day.
BDC Operators Face Dollar Scarcity
Bureau De Change (BDC) operators report that commercial banks are not supplying enough dollars. This contradicts the Central Bank of Nigeria’s (CBN) directive, which allows BDCs to buy up to $25,000 per week from authorized dealers.
Official Market Also Experiences Decline
In the official Nigerian Foreign Exchange Market (NFEM), the naira depreciated by 0.6% on Thursday. The exchange rate moved from ₦1,538.68 to ₦1,547.81 per dollar, based on CBN data.
On Thursday, authorized dealers quoted the highest rate at ₦1,560 per dollar, compared to ₦1,550 on Wednesday. The lowest recorded rate was ₦1,543.09 per dollar, slightly weaker than ₦1,532 from the previous day.
Naira’s Performance Against Other Currencies
The naira traded at:
- ₦2,020 per British pound
- ₦1,690 per euro
- ₦1,150 per Canadian dollar
Market Confidence Declines
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), highlighted key concerns. He noted that BDC operators face liquidity constraints, limited banking partners, and unfavorable rates.
He added that these challenges erode confidence in the forex supply system, fueling currency substitution and speculative trading. As a result, the naira continues to weaken.
