The Nigerian naira experienced its highest depreciation ever, closing at N1,348.63/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official window. This marks the sixth instance the naira has crossed the N1,000/$ threshold in the official market, highlighting a persistent trend of weakness.
The latest closing rate is N456.73 weaker than the N891.90 recorded at the close of trading on the previous Friday, indicating a significant decline in the currency’s value. This depreciation follows a historical low on December 8th, 2023, when the naira reached N1,099.05 per dollar, initiating a pattern of weakness.
The naira’s journey across the N1,000/$ threshold continued with subsequent depreciations on December 28th, 2023 (N1,043.09/$1), January 3rd, 2024 (N1,035.12/$1), and January 9th, 2024 (N1,089.51/$1). Despite a marginal appreciation on January 10th, 2024, closing at N1,082.32/$1, the currency experienced its biggest slump on January 29, 2024, closing at N1,348.63/$1.
During Monday’s trading, the naira recorded an intraday high of N1414.94/$1 and an intraday low of N701/$1, reflecting a wide spread of N713.94/$1. Notably, the naira closed flat against the British Pound at N1,790/£1, maintaining the same rate as the previous day.
The Canadian dollar also closed at a steady rate of N1020/CA$1, unchanged from the previous trading day. However, against the Euro, the naira saw a decline, trading at ₦1,540/€1, compared to the previous closing price of ₦1,500/€1, representing a loss of N40.
The persistent depreciation of the naira raises concerns about its stability and calls for close monitoring of the foreign exchange market to understand the factors contributing to this ongoing trend.
