Naira Crashes to N747.87 at Investors and Exporters Window as Depreciation Continues

The naira continued to lose value against the dollar on Monday, closing at N747.87 at the Investors and Exporters (I&E) window.

This represents a 1.01 per cent decline from the N740.38 it traded at on September 1. The open indicative rate also fell to N772.06 to the dollar on Monday, from N765.66 on Friday.

The naira fluctuated within a wide range of N730 to N799.90 to the dollar during the day’s trading, before settling at N747.87.

The high volatility reflects the low supply of foreign exchange in the market, as demand continues to outstrip supply.

According to data from FMDQ Securities Exchange, only $74.64 million was traded at the I&E window on Monday, compared to $93.69 million on Friday. The low forex liquidity has put pressure on the naira and hampered economic activities in the country.

The naira continued to lose value against the dollar at the parallel market, where it exchanged at N948 to the dollar on Monday, 4th September 2023, from N938 on Friday.

According to [AbokiFX], “the exchange rate between the naira and dollar at Lagos Parallel Market (Black Market) closed at N948/$1 on Monday after trading at N938/$1 on Friday”. This was amid the efforts of the Central Bank of Nigeria (CBN) to intervene in the market and boost forex supply.

The CBN has recently taken some measures to address the forex crisis, such as banning the sale of forex to Bureau De Change (BDC) operators, increasing the allocation of forex to banks, and directing banks to sell forex to customers over the counter.

However, these measures have not been effective in stabilizing the naira or increasing forex availability in the market. Analysts have called for more structural reforms and diversification of the economy to reduce the dependence on oil revenues and increase forex inflows into the country.

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