20241108 204053

Naira Hits N1,740 Per Dollar as Nigeria’s Forex Crisis Deepens

The Nigerian naira took a troubling nosedive on Friday, depreciating to N1,740 per dollar in the parallel market—down from N1,725 the previous day—sparking concerns over the country’s deepening forex crisis.

In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira also fell sharply, sliding to N1,678.87 per dollar from Thursday’s rate of N1,639.50, marking a significant N49.37 depreciation.

According to data from the FMDQ, a notable surge in dollar trading volume accompanied this depreciation, with turnover soaring by 473 percent.

The official market saw an unprecedented $1.4 billion exchanged on Friday—compared to $244.96 million traded on Thursday—reaching the highest daily trading volume in years.

Analysts suggest that this increased volume reflects frantic efforts by businesses and investors to secure foreign currency amid uncertainty surrounding the naira’s stability.

The parallel market’s widening gap from the NAFEM rate has seen some relief, narrowing to N61.13 per dollar from N85.5 on Thursday, but the overall depreciation has raised alarms over Nigeria’s economic outlook.

The continued downward pressure on the naira is fueling concerns about inflation, the purchasing power of Nigerians, and the stability of the foreign exchange reserves, as the currency’s slump appears far from over.

Economists warn that without urgent intervention, the naira could face further devaluation, leaving Nigeria in a vulnerable economic position as both the official and parallel markets continue to face intense forex demand pressures.