Naira sinks to all-time low of N1,099.05/$ in official market, raising concerns ahead of Christmas

Naira sinks to all-time low of N1,099.05/$ in official market, raising concerns ahead of Christmas

According to a report by Nairametrics, the Nigerian Naira reached a new historical low on Friday, December 8th, 2023, closing at N1,099.05 per dollar in the official market.

This represents a significant depreciation of 23.29% compared to its previous closing rate, marking a concerning trend just 17 days before Christmas.

This marks the first time the Naira has crossed the N1,000/$ threshold, signifying a significant depreciation and raising concerns about its impact on the economy.

This development represents a major turning point in the history of the Naira, as it has never before reached such a low exchange rate.

Despite recent efforts by the Central Bank of Nigeria to bolster the foreign exchange market, the Naira’s downward trajectory continues, raising anxieties over its impact on the upcoming holiday season, traditionally characterized by increased consumer spending and reliance on imported goods.

This development is likely to exacerbate existing inflationary pressures and further strain household budgets, particularly for those reliant on imported goods.

The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.

The domestic currency depreciated by 23.29% to close at N1,099.05 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.

This represents an N255.98 loss or a 23.29% decline in the local currency compared to the N843.07 it closed on Thursday and an all-time low per the Nairametrics’ tracker.