LEGIT NG
The naira hit its lowest on Thursday, November 25, 2024, as the demand pressure in the unofficial market drove it to a record low of N1,410 per dollar.
This is against the closing value of N1,365 on Wednesday and represents a 3.29% lower, or N45.00 loss.
As of Wednesday, the FMDQ data however showed that the domestic currency depreciated 0.41% to close at N882.24 to a dollar at the close of business, based on data from NAFEM, where forex is officially traded.
Analysts said that the depreciation is caused by the reduction in the supply of dollars from various sources, including the Central Bank of Nigeria (CBN).
The depreciation came despite efforts by the government to boost the local currency and reverse the losses.
In his speech earlier, the CBN governor, Olayemi Cardoso, said inflation will moderate this year and described the country’s currency as undervalued.
He said:
“We believe that the naira is currently undervalued. …And coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term.”
The new record appears to be tilting towards the prediction by some analysts that the naira will further worsen, dropping to N1,800 per dollar.
Legit.ng earlier reported that Adetilewa Adebajo, the CEO of Corporate Finance Group (CFG) Advisory, said there is a likelihood that the naira will conclude the year within the range of N1,500 to N1,800 against the dollar.
How Nigerians are reacting on social media
Referring to the present administration led by Tinubu, @firstladyship said on the X page,
“He’ll waste everyone’s time. The Naira is going to hit ₦2000. He won’t achieve a 21% inflation rate. He won’t achieve a ₦trillion economy. He won’t achieve a unified exchange rate.”
@ruffydfire said:
“At some point, 1 million XOF was 16,000 Naira, today XOF is higher than the Naira. Make it make sense.”
