Naira falls 8.97% against Dollar

The Nigerian naira started the New Year sourly, tumbling 8.97 per cent against the dollar on the first day of trading in 2024 at N988.46/$1, despite a $2.25 billion injection from the African Export-Import Bank (Afreximbank) to ease the country’s forex crunch.

This represents an N81.35 loss or a decline of 8.97 per cent by the Naira decline when compared to the N907.11 it closed on Friday.  

The intraday high recorded was N1130/$1, while the intraday low was N744.50/$1, representing a wide spread of N385.50/$1.    

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $15.38 million, representing an 82.78 per cent decrease compared to the previous day.      

Similarly, the naira depreciated at the parallel forex market where it exchanged at N1,220/$ a 0.41 percent depreciation when compared to N1,215/$ on the last trading day of December 2023, while peer-to-peer traded at N1,209.75/$ representing 0.89 per cent decline from the N1990/$ on the last trading in December 2023.

Recall that Afreximbank disbursed part of its $3.3 billion foreign exchange support facility to the Nigerian government to address the acute liquidity shortage in the FX market, since the unification of the FX market by the Central Bank of Nigeria (CBN) on June 14, 2023.

Afreximbank’s release of $2.25 billion out of the $3.3 billion foreign exchange (FX) support facility to Nigeria’s FG to relieve the acute liquidity shortage in the country’s FX market, hasn’t shown any positivity as traders maintain their positions.

This pivotal agreement was officially signed on December 29, 2023, marking a milestone in the financial cooperation between the involved entities, who also recently signed a $150 million deal.