Naira Plummets to Record Low of N999/$1 on Official Market, N1,152/$1 on P2P

Nigeria is facing a severe currency crisis, as the naira reached its lowest level ever against the US dollar on October 19, 2023.

According to the FMDQ, the official platform for forex trading in Nigeria, the naira exchanged for N999 per dollar at the intraday high, breaking the previous record of N790 per dollar set a day earlier.

The naira also suffered a massive loss in the parallel market, where forex is traded informally and often through cryptocurrencies. The P2P rate soared to N1,152 per dollar in the afternoon, indicating a huge gap between the official and unofficial markets.

The naira’s depreciation is a result of several factors, including low oil prices, high inflation, foreign exchange shortages, and economic uncertainty.

The Central Bank of Nigeria (CBN) has been struggling to stabilize the naira by implementing various policies, such as banning cryptocurrency transactions, restricting access to forex for certain imports, and introducing the NAFEM window to improve liquidity and transparency.

However, these measures have not been enough to stop the naira’s slide, which has negative implications for Nigeria’s economy and its people. The weak naira makes imports more expensive, fuels inflation, erodes purchasing power, discourages foreign investment, and increases debt servicing costs.

The naira’s situation is still evolving, and more updates will be provided as new information emerges.

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