BREAKING: Naira dissapoints FG’s N700 per dollar projection, crashes in first trading day in 2024

The Nigerian naira began the New Year very poorly, crashing by 8.9% against the US dollar on Tuesday, January 2, 2024....CONTINUE READING

The naira closed at N988.46 per dollar despite a $2.5 billion from Afrexim Bank injected into the economy to cushion the forex shortage in the country.

Naira’s fall follows the disbursement of part of the $3.3 billion forex exchange support facility to the Nigerian government.

Legit.ng reported that the Nigerian National Petroleum Company Limited entered into a crude swap deal with Afrexim Bank for the facility.

The fund was disbursed on the last day of 2023, according to reporting by Legit.ng.

The Afrexim Bank facility was intended to ease the acute forex shortage in the FX market.

The naira’s depreciation of 8.9% on the first trading day of the new year disappoints the expectation of the Nigerian government, which has pegged the foreign exchange rate at N700 per dollar in the 2024 budget.

Naira falls in all markets

Reports say the naira depreciation represents an N81.35 loss or 8.9 loss by the naira compared to the N97.11, which closed on Friday, December 29, 2023.

The naira recorded an intraday high of N1,130 per dollar and an intraday low of N744.50 per dollar, representing a wide disparity of N385.50 per dollar.

Data from NAFEM shows that Forex turnover at the close of trading was about $15.38 million, representing an 82% decline compared to the previous day.

In the parallel market, the naira fell to exchange at N1,220 per dollar, representing a 0.41% loss compared to the N1,215 it exchanged on December 29, 2023.