Naira exchange rate returns above N700/$ at the black market

By: Damian Okonkwo

The Nigerian naira has shown more weakness against the US dollar at the foreign exchange market, with the exchange rate between the Naira and the US dollar rising to N708/$ at the black market last week's Friday. The rate has remained at this level up to the present week.

Similarly, the exchange rate at the Investors and Exporters Window (I&E) depreciated to N436.32/$ on Thursday 8th September 2022.

The current decline in the Naira exchange rate could be further attributed to the decline in the forex supply rate in the past week. Thus the supply rate fell to $37.5 million against the previous record of $82.23 million. This marks an over 54.4% decrease in the just concluded week.

The current instability and regular depreciation of the Naira against the US dollar have largely affected the performance of the industrial sectors of the economy which often had to purchase their raw materials at a higher rate only to find values falling after production. This has been a major cause of the inflation rate witnessed in the country today.

The instability of the Naira exchange rate has pushed many Nigerian citizens to seek foreign investments offering them the opportunity to earn dollars to support their living.

Many now dabble into crypto Peer-to-Peer platforms to exchange the fiat currency with the US dollar and make profits with the constant fluctuations. The exchange rate at the Peer-to-Peer platforms over the weekend rose to N714/$.