Dollars/naira

In a significant turn of events, the naira experienced a notable dip, plummeting to N1043.09/$ on the official Investor and Exporter foreign exchange window this Thursday. This marks a substantial 19.54% decline from its closing position at N872.59/$ just the day before, as reported by FMDQ Securities Exchange data.

Remarkably, this is the second instance where the naira has breached the N1,000 mark on the official FX window since the removal of the rate cap by the Central Bank of Nigeria. Notably, on December 8, the national currency reached an unprecedented low of N1,099.05/$ on the I&E window.

Thursday's trading session unfolded with the official market commencing at N920/$, reaching highs of N1235.65/$ and lows of N720/$, ultimately closing at N1043.09/$. The total forex turnover for the day amounted to $83.63 million, reflecting a 34.63% decrease from the previous day's figure of $127.93 million.

The ongoing decline in the naira's value has been a persistent trend since the Central Bank reintroduced the 'Willing Buyer, Willing Seller' model for the currency. In June, the apex bank announced the collapse of all FX market segments into the Investors and Exporters window, with certain transactions, such as medicals, school fees, BTA/PTA, and SMEs, continuing to be processed through deposit money banks.

Despite the Central Bank's efforts to enhance liquidity, including clearing FX backlogs, the downward trend in the naira's value has persisted. Governor Olayemi Cardoso highlighted positive responses to tranche payments during the recent Chartered Institute of Bankers of Nigeria's 58th Annual Bankers’ Dinner and Grand Finale of the Institute’s 60th Anniversary, indicating improvements in FX market liquidity in recent weeks.