The intraday high recorded was N1186/$1 as the naira fell marginally against the U.S. dollar both at the official market and the parallel market on Tuesday 12th December 2023.
Naira had regained ground to appreciate massively against the dollar on Monday, 11th December 2023 at the official market after it plunged to a historical low on Friday, December 8th, 2023.
The domestic currency depreciated 0.09% to close at N865.03 to a dollar at the close of business on Thursday, data from the NAFEM where forex is officially traded, showed.
This represents a 0.74 kobo loss or a 0.09% decline in the local currency compared to the N864.29 it closed on Monday.
- The intraday high recorded was N1186/$1, while the intraday low was N720.00/$1, representing a wide spread of N466/$1.
- According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $99.09 million, representing a 25.19% decrease compared to the previous day.
Similarly, the naira closed dropped by 1.24% at the parallel forex market where forex is sold unofficially, the exchange rate quoted at N1210/$1 as against N1195/$1 the previous day, while peer-to-peer traders quoted around N1216.10/$1.
Expert reaction
Amid the rising free fall of the Naira both at the official Nigerian Foreign Exchange Market (NAFEM) and the unofficial market, financial experts had called on the Central Bank of Nigeria (CBN), to de-dollarise the economy by declaring any local transactions in the US dollars illegal.
Speaking on strategies that can be used for the naira to regain strength, the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), Dr. Biodun Adedipe, said the CBN should stop government agencies from charging local operators and entities in US dollars.
According to him, the sale of crude oil to local refineries should also be made in Naira rather than in US dollars.
- Adedipe said: “CBN should deal transparently with participating banks at the I&E Window. De-dollarize the economy by declaring as illegal any local transactions in US dollars (sale of assets, rent/leases, and other services, including school fees and medical bills) and ensure that government agencies stop charging local operators and entities in US dollars (quite common in the maritime sector).
- “Other suggestions include the need to ensure that the sale of crude oil to local refineries should be made in Naira rather than dollars.
- “President Bola Tinubu should have a direct engagement with bank CEOs to generate ideas and use moral suasion to enlist their support for the market reforms. Face the reality that unified exchange rates (not any different than floating the Naira) is a poor policy choice for a structurally defective and weak economy like ours,” he added.