The Nigerian naira has plummeted to a historic low of N993.83 against the US dollar at the investors’ and exporters’ (I&E) window, the official foreign exchange trading platform in the country.
This staggering depreciation represents a 25.81% drop in the local currency’s value from its previous rate of N789.94.
Data provided by FMDQ Securities Exchange, the platform overseeing FX trading in Nigeria, revealed that trading at the official window opened at N794.70 and closed at N993.83.
The daily turnover in the FX market amounted to $88.31 million, reflecting significant activity in the foreign exchange arena.
Simultaneously, at the parallel market section, the naira maintained its recent gains, trading at N1,150 to the US dollar.
The chair of the presidential committee on fiscal policy and tax reforms, Taiwo Oyedele, recently disclosed that the Nigerian government is planning to implement new FX regulations, which include clamping down on illicit currency trading.
The government’s objectives include clearing a backlog of dollar demand, estimated at approximately $6.7 billion, bolstering the naira forward market, and establishing transparent rules for the official market’s operations.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, had previously announced the country’s anticipation of $10 billion in foreign currency inflows, a measure aimed at alleviating liquidity constraints in the foreign exchange market.
These efforts are part of Nigeria’s broader strategy to stabilize its currency and enhance confidence in the nation’s economy.