The naira sustained its unprecedented downward trend against the United States dollar as it weakened to an all-time low on the parallel market (P2P) where it sold at N1,152 per dollar.
This sharp increase underscores the ongoing and steady depreciation of the naira. The official exchange rate is N999/$1 on the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This alarming situation was reported based on intraday trading data from the FMDQ, where forex is officially traded through NAFEM, according INDEPENDENT.
The rate is an intraday high, and market analysts predict that it may close at an even lower rate when the market concludes its trading activities for the day.
In early afternoon trading on the black market known as P2P, where forex is exchanged informally and often involves cryptocurrencies, the exchange rate surged to N1,152/$1.
On Monday, the naira had already depreciated to N1,100 to the US dollar on the parallel market, while the official market rate stood at N790 per dollar. The steady decline in the value of the naira against the US dollar poses significant economic challenges for Nigeria and its citizens, particularly on imported goods.
President Bola Ahmed Tinubu had on assumption into office opted to unify the official and parallel market rates, claiming that the decision would save Nigeria from financial hemorrhage.
