Naira Slumps To N570/$1 As Scarcity Bites Harder

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THE gap between the official and unofficial market exchange rates widened to N157.94 at the close of business on Thursday September 16, 2021, as one dollar exchanged for N570.00 due to scarcity of the greenback. 

In the same vein, one British pound exchanged for N770, while one Euro went for N655. Specifically, Naira fell significantly against the U.S dollar at the parallel market on Thursday, falling further from N562 per $1 it exchanged on Wednesday, according to information obtained from AbokiFX. 

This implies an N8.00 or 0.90 devaluation from the N557.00 it traded on Tuesday September 14, 2021. Meanwhile, the naira remained stable against the greenback at the official market on Wednesday September 15, and Thursday September 16, as foreign exchange turnover remained unchanged from what was posted in the previous session on Tuesday. 

Data recorded on the FMDQ securities exchange window where forex is officially traded, showed that the naira closed at N412.06 per $1 at the official window on the two days. Also, on Wednesday, the forex turnover remained unchanged with $175.10 million recorded at the spot market, the same rate posted in the previous session on Tuesday.

The domestic currency hit an intraday high of N400.00 and a low of N414.90 at the trading session before closing at N412.06 on Wednesday. Meanwhile, findings show that some individuals and corporate entities are saving their fortunes in dollars as a preferred store of value. 

Some of those who spoke to the newsmen said it was safer, convenient and profitable to hoard dollars because of the dwindling fortunes of the naira, especially in the parallel forex market.