Exchange rate plummets to N848 in I&E window, hitting record low

Naira weakens despite three-month low for U.S. dollar index
Naira weakens despite three-month low for U.S. dollar index

On October 17th, 2023, the exchange rate between the Nigerian naira and the U.S. dollar witnessed a significant devaluation, plummeting to N848/$1 on the official investor and exporter window.

This unprecedented decline was confirmed by data sourced from the FMDQ website, a reliable platform that publishes daily exchange rate information in Nigeria’s official forex exchange market.

Remarkably, on the same day, the naira’s exchange rate against the dollar reached an all-time intra-day high of N981/$1.

This marks a substantial departure from previous exchange rates, establishing a new and historically low point for the naira.

Before this drastic shift, the lowest recorded official exchange rate for the naira was N803.90/$1, which was noted on July 14th, 2023.

In contrast, the closing rate for October 17th exhibited an official exchange rate of N848.12/$1, representing a notable increase from the N778.80/$1 rate recorded just a day earlier.

The official market witnessed some extreme fluctuations in dollar pricing, with rates reaching as high as N981/$1, underscoring a significant shift in the valuation of the dollar within the official market.

On the other end of the spectrum, the lowest rate recorded during the day was N758.50/$1.

In terms of trading volume, the total turnover for the day amounted to $134.28 million, indicating substantial activity in the forex market.

Conversely, on the black market, the exchange rate was quoted at approximately N1,050/$1, while for incoming foreign currency, it was around N1,070/$1.

The Peer-to-Peer (P2P) market also reflected the naira’s weakened position against the dollar, with exchange rates reaching as high as 1,060/$1.

These market fluctuations highlight the ongoing challenges in the foreign exchange landscape and the impact on Nigeria’s economic stability.