Naira Loses Value as Dollar Becomes More Expensive in Nigeria

(Dollar to Naira. Photo by Naiarcompare)
On Thursday, November 12, lots of people started the day trying to buy foreign currency, putting pressure on the naira in both the bank market and the black market.

At the official window, it entered the session around N1,350 to N1,353.50 per dollar, according to data from the Central Bank of Nigeria.

Earlier in the week, the official rate moved between N1,349.25 and N1,354, with interbank turnover of $248.07 million across 144 deals.

On the black market, dealers in Lagos and Abuja quoted the dollar at N1,411 to N1,420 for buying and N1,419 to N1,430 for selling.

That leaves a gap of about ₦68 to N80 between the official and street rates.

The parallel rate touched N1,430 this week, its weakest level in 10 months.

Analysts blame the pressure on end of year demand for dollars from importers and travellers, outflows of foreign portfolio investment, and a stronger US dollar globally.

Nigeria has about $54.9 billion in its foreign savings account, which is more than the Central Bank's $51.04 billion goal for the whole year.

Experts say this extra money acts like a safety net to keep the economy steady for the rest of the next three months.