DOLLAR TO NAIRA BLACK MARKET EXCHANGE RATE TODAY – 7th October 2023

Naira’s Struggles Continue as New CBN Management Faces Forex Challenges

The Naira’s poor performance against the US dollar persisted at the foreign exchange market on Thursday, highlighting the ongoing challenges in the Nigerian currency’s value. Data indicates that the Naira lost more ground in both the official and parallel markets. This concerning trend has continued despite the recent confirmation of the new Central Bank of Nigeria (CBN) management team by the Nigerian Senate, raising questions about the path forward for the Naira.

Naira’s Depreciation Across Forex Markets

On Thursday, October 5, 2023, the Nigerian currency depreciated further against the US Dollar in all foreign exchange markets. This depreciation is attributed to persistent supply issues and a lack of clear directives from the new CBN management team.

Mr. Yemi Cardoso and four other deputy governors were confirmed by the Senate, but since assuming office, there has been no substantial policy direction from the CBN. This is especially evident in the area of foreign exchange supply, and the market continues to react to this uncertainty.

Official Market Exchange Rate

Data from FMDQ Securities revealed that in the Investors and Exporter window, the official market, the Naira closed at N775.20 against the US dollar on Thursday. This represents a significant 2.51% drop in value compared to the N756.21/$1 rate it traded at on Wednesday, October 4, 2023. The steep decline in the official market underscores the ongoing pressure on the Naira’s value.

Peer to Peer and Parallel Markets

In the Peer to Peer section, which is predominantly used by crypto traders and fintech companies, the Naira’s decline against the US dollar continued. On Thursday, it was reported at N1,009/$1, as opposed to the previous day’s rate of N1,005/$1. This further erosion of value in this market segment reflects the broader trend of Naira depreciation.

Similarly, in the parallel market, the Naira lost more value against the US Dollar on Thursday. It was quoted at N1,001/$1, the same rate as Wednesday’s N1,000/$1. The stability in the rate in the parallel market indicates a consistent downward pressure on the Naira’s value.

Other Currency Exchange Rates

The Pound Sterling exchange rate also felt the impact of the Naira’s depreciation. CBN reported that the Naira closed at N927.40/£1, compared to N904.75/£1, indicating a loss in value.

Against the Euro, the Naira shrank by N17.95 to sell at N801.81/€1, compared to Tuesday’s rate of N783.86/€1. This decline is not limited to the US Dollar alone; the Naira is experiencing challenges against multiple international currencies.

In summary, the Naira’s struggles in the foreign exchange market continue to raise concerns. The lack of clear policy direction from the new CBN management team, coupled with persistent supply issues, has contributed to the currency’s depreciation. The Naira’s value has weakened not only against the US Dollar but also against other major foreign currencies, posing challenges to the Nigerian economy and its trade partners. It remains to be seen how the new CBN leadership will address these issues and stabilize the Naira in the coming months