The official NAFEM closed the year with the exchange rate between the naira and dollar at N907.11 per dollar, signaling the conclusion of a tumultuous year for the currency of Africa’s largest economy.
This was revealed by data obtained from the FMDQ where the exchange rate trades officially today.
Nevertheless, as of N907.11, the exchange rate has experienced a decline of 26.8% since June 14th, after the central bank’s unification of the exchange rate market under the directive of the Tinubu administration.
On a year-to-date basis, the exchange rate has depreciated by a whopping 49% after opening the year at N461.5/$1.
On December 8th, 2023, the Nigerian Naira hit a historic low, concluding at N1,099.05 per dollar in the official market. This marked a notable milestone as the Naira surpassed the N1,000/$ threshold for the first time, indicating a substantial depreciation and sparking concerns about its potential impact on the economy.
Notably, on December 28th, the exchange rate also dropped to N1,043.9, marking the second occurrence since reunification. The official black market saw its exchange rate breach the N1,000 threshold on September 29th, 2023, according to Nairametrics records. Subsequently, it experienced a decline, reaching as low as N1,260 and closing the year at N1,215/$1.
This shift signifies a significant moment in the Naira’s history, as it had never before crossed the N1,000/$1 exchange rate. In the peer-to-peer (P2P) market, where exchanges occur through cryptocurrency stablecoins, the Naira concluded at approximately N1,200/$1.
Despite these fluctuations, the market turnover for the year amounted to $26.8 billion, closely aligning with the $27 billion recorded in 2022. Most foreign exchange transactions continued to take place in the black market during this period.
