Naira Plunges to Record Low in Importers-Exporters Trading

Naira Plunges to Record Low in Importers-Exporters Trading

By Sahabi Abdul

Nigeria’s currency fell to a record low in importers-exporters trading to exchange at 435 naira for each dollar.

The currency lost as much 4.82 percent of value on Thursday after starting the day at 413.79, according to data on the Financial Market Dealers Association, or FMDQ, platform.

Traders reported a growing demand for hard currencies not matched by supply, as business activities gear up for the incoming year.

Naira’s worsening decline.

The day’s volatile trading saw the naira firm to as much as 408 and weaken to as much as 445.50 at a point, with a turnover of 227.29 million dollars. The bid for forward settlements ranged from 447.50 to 453.12.

After running a multiple exchange-rate system for years, the Central Bank of Nigeria adopted the importers-exporters rate as the official benchmark earlier in the year. The regulator has struggled to narrow the wide gap with the parallel market rate, which traded at between 566 and 570 per dollar.