Naira Crashes To ₦1,309/$1 At Official Market

The Nigerian Naira has depreciated in value at the official market, with the exchange rate falling to ₦1,309.39 to a dollar, according to the latest data from the FMDQ trading platform.

This represents a 0.69 percent decline from the previous day’s rate of ₦1,300.43 against the dollar.

Despite this, trading volume showed a significant increase, with the total turnover rising to $857.78 million, more than doubling from Wednesday’s $416.10 million.

In the Investor’s and Exporters’ (I&E) window, the Naira experienced fluctuations, trading between ₦1,392 and ₦1,250 against the dollar.

This volatility in the forex market comes amidst various economic adjustments and policy shifts by the Central Bank of Nigeria (CBN).

Adding to the financial landscape changes, the CBN has recently announced new capital requirements for banks, significantly raising the minimum capital base for commercial banks with international authorization to N500 billion.

This move is part of the apex bank’s broader strategy to fortify the Nigerian banking sector, following its call for banks to hasten the recapitalization process to bolster the financial system.

These developments, including the adjustment of the benchmark interest rate to 24.75%, signal the CBN’s intent to tighten monetary policy in a bid to stabilize the economy.

As the financial sector braces for these changes, the impact on borrowing costs, investment, and overall economic health remains a focal point for analysts and stakeholders.