The dollar to naira exchange rate surged to a new high today, reaching 1,500 naira per dollar in Nigeria’s parallel market, according to financial analysts and currency traders. The sharp rise comes amid persistent foreign exchange shortages and rising demand for dollars among businesses and individuals. The Central Bank of Nigeria (CBN) has yet to comment on the latest spike, which follows weeks of steady depreciation in the naira’s value. The parallel market rate, often used as a benchmark for informal transactions, has diverged significantly from the official exchange rate, which remains around 1,200 naira per dollar. The depreciation has raised concerns about inflation and economic stability, with economists warning of potential impacts on imports and consumer prices.
Dollar to Naira Exchange Rate Surges to Record High
The dollar to naira exchange rate surged to a new record high today, reaching ₦1,000 per dollar in the parallel market. This marks the highest level since the Central Bank of Nigeria (CBN) introduced its new forex policy in June. The black market rate has been rising steadily amid increased demand and limited liquidity.
The official exchange rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) also climbed to ₦900 per dollar. This follows a series of devaluations as the CBN adjusts to economic pressures. The gap between the official and parallel market rates remains significant, reflecting ongoing forex scarcity.
Analysts attribute the surge to rising demand for dollars among businesses and individuals. The CBN’s recent forex policy changes have not fully addressed liquidity concerns, they say. “The demand for dollars continues to outpace supply, driving the rate higher,” said a financial expert at a Lagos-based research firm.
The naira’s decline has raised concerns about inflation and the cost of imports. Economists warn that the weaker currency could worsen price increases in the coming months. The CBN has yet to comment on the latest exchange rate movements.
Meanwhile, the World Bank and IMF have urged Nigeria to implement reforms to stabilize the forex market. Without intervention, the naira’s depreciation could deepen economic challenges, they caution. The government has not yet announced new measures to address the crisis.
The parallel market rate has become a key indicator of Nigeria’s economic struggles. Traders report increased activity as Nigerians seek dollars for essential imports and travel. The situation highlights the need for structural solutions to forex instability.
Central Bank Intervenes as Naira Hits New Low Against Dollar
The Central Bank of Nigeria (CBN) intervened in the foreign exchange market today as the naira hit a new low against the U.S. dollar. The naira weakened to 1,200 per dollar in the parallel market, surpassing previous record lows. The CBN confirmed it injected $100 million into the market to stabilize the currency.
The naira’s decline has been driven by high demand for dollars among importers and investors. Economic analysts attribute the pressure to limited foreign exchange supply and rising inflation. The CBN’s intervention follows weeks of sustained depreciation in the naira’s value.
Governor Olayemi Cardoso of the CBN stated that the bank remains committed to stabilizing the exchange rate. “We are taking measures to address liquidity constraints and ensure market stability,” he said in a statement. The CBN has previously introduced policies to curb speculative trading.
Parallel market traders reported increased dollar demand ahead of the intervention. One trader noted that the naira’s slide has accelerated due to panic buying. The official exchange rate remains significantly stronger, but the gap between official and parallel rates continues to widen.
Economic experts warn that further depreciation could fuel inflation and erode purchasing power. The naira’s decline has raised concerns about Nigeria’s economic stability. The CBN has urged businesses to access foreign exchange through official channels.
The CBN’s intervention may provide temporary relief, but analysts say sustained stability requires deeper reforms. The bank has yet to announce additional measures to address long-term currency pressures. The naira’s performance will remain a key focus for investors and policymakers.
Economic Analysts Warn of Further Devaluation Amid Dollar Demand
The dollar to naira exchange rate reached a new high today, with the naira weakening further against the US dollar. The Central Bank of Nigeria (CBN) reported the official rate at ₦1,000 per dollar, while parallel market traders quoted rates as high as ₦1,100. This marks the highest recorded exchange rate in recent history.
Economic analysts warn of further devaluation amid sustained dollar demand. Experts attribute the pressure to foreign exchange scarcity and rising import costs. “The naira’s depreciation is driven by structural imbalances in the forex market,” said Dr. Ayo Adebayo, a senior economist at Lagos Business School.
The CBN has intervened with forex auctions to stabilize the naira, but demand continues to outpace supply. Central bank data shows Nigeria’s foreign reserves have declined by $2 billion in the last three months. “Without significant forex inflows, the naira will remain under pressure,” noted a report from Financial Derivatives Company.
Parallel market traders report increased demand from importers and travelers. Some traders speculate the naira could weaken further if the CBN does not adjust its policies. “The gap between official and black-market rates is widening,” said a forex dealer in Lagos.
The World Bank and IMF have urged Nigeria to address economic reforms to stabilize the currency. Analysts stress that without structural changes, the naira’s depreciation may continue. The next CBN monetary policy meeting is scheduled for next month.
Naira Plummets as Forex Scarcity Deepens Across Nigeria
The naira continued its downward spiral against the U.S. dollar on Tuesday, reaching a new low as forex scarcity deepens across Nigeria. The black market exchange rate hit 1,300 naira per dollar, up from 1,250 naira just a week ago. The Central Bank of Nigeria (CBN) has yet to comment on the latest depreciation.
Forex scarcity has worsened due to reduced dollar inflows from foreign investors and oil revenues. The CBN’s foreign reserves fell to $33.2 billion last week, the lowest in over a year. Analysts attribute the decline to weak oil prices and capital flight.
Businesses and individuals are struggling to access foreign currency for essential imports. The Manufacturers Association of Nigeria (MAN) reported a 40% increase in import costs over the past three months. “The situation is unsustainable,” said MAN Director Segun Ajayi, citing factory shutdowns.
The parallel market premium remains high, with a gap of over 50% between official and black market rates. The CBN’s official rate stands at 770 naira per dollar, far below the black market rate. Economists warn of further depreciation if the gap persists.
The naira’s decline has fueled inflation, with consumer prices rising 33.2% year-on-year in April. The National Bureau of Statistics (NBS) linked the surge to rising import costs. “The exchange rate crisis is worsening inflation,” said NBS Director Semiu Adeniran.
The government has not announced new measures to stabilize the naira. Analysts urge intervention to restore confidence in the forex market. Without action, the naira may continue its steep decline, they warn.
Government Urges Stability as Dollar to Naira Rate Reaches All-Time Peak
The dollar to naira exchange rate hit a new all-time high today, with the naira weakening further against the US dollar. The Central Bank of Nigeria (CBN) confirmed the rate reached ₦1,000 per dollar in the parallel market, surpassing previous records. This marks the highest level since the naira’s devaluation in recent years.
The government has urged citizens to remain calm amid the economic uncertainty. Vice President Kashim Shettima stated in a statement that measures are being taken to stabilize the currency. He emphasized the need for patience as authorities work to address the challenges.
Economic analysts attribute the sharp decline to rising demand for foreign currency and limited dollar supply. The CBN’s foreign exchange reserves have been under pressure, contributing to the naira’s depreciation. Experts warn of potential further volatility if interventions are not implemented swiftly.
Business owners and importers have expressed concerns over the impact on costs. The Manufacturers Association of Nigeria (MAN) reported increased production expenses due to the weaker naira. The group called for urgent policy adjustments to mitigate the effects on local industries.
The CBN has not yet announced any immediate measures to curb the naira’s decline. However, sources indicate discussions are ongoing about potential interventions. The bank’s governor, Godwin Emefiele, has previously stated that the naira’s value should be market-driven.
The latest exchange rate surge has sparked debates about Nigeria’s economic policies. Critics argue for a more flexible exchange rate system, while others advocate for stricter controls. The government maintains that current strategies aim to balance stability with market realities.
The public is advised to monitor official channels for updates on any policy changes. Authorities have reiterated their commitment to addressing the economic challenges. The situation remains fluid as stakeholders await further developments.
The dollar-to-naira exchange rate reached a new high today, reflecting continued pressure on Nigeria’s currency amid economic challenges. Analysts note that sustained demand for foreign exchange and limited liquidity in the official market are driving the trend. The Central Bank of Nigeria has previously intervened with measures to stabilize the naira, but volatility persists. Future developments will depend on policy adjustments, foreign investment flows, and global economic conditions. Businesses and individuals relying on imports or dollar-denominated transactions may face higher costs in the near term.
