Naira tumbles losing 1.56% value, exchanges N980 to US dollar

The Nigerian naira has tumbled to N980 per dollar at the parallel market segment otherwise called black market segment of the foreign exhange (FX) market on Wednesday September 20th, 2022 as the demand for, and supply shortage of the dollar continued to have adverse effect on the exchange rate dynamics.

The foreign exchange (FX) pressure continued on Wednesday as the naira depreciated against the dollar across market segments, exchanging at N980 for 1 US dollar at the black market which is the parallel market segment of the (FX) market. This represents a depreciation of 1.56 percent of its value as the dollar traded at N965 per dollar at the close of business on Tuesday and closed Wednesday at N980 at the parallel market.

How Much is Dollar To Naira Black Market Closing Today Wednesday 20th September, 2023

The dollar to naira black market exchange rate closed today Wednesday September 20th, 2023 with the naira exchanging at 1 USD to 980 NGN at the parallel market popularly called black market. Buyers were buying one US dollar for ₦970 and selling at N980, leaving a N10 profit margin.

With the current rate, naira has lost 30.76 percent (N227) of its value to the dollar year-to-date from N738/$1 at the beginning of the year, on the black market.

The Nigerian naira depreciation was attributed to strong demand for dollars by individuals travelling for business, school, medical or tourism.

At the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official FX market, naira fell by 0.34 percent as the dollar was quoted at N776.60 on Tuesday compared to N773.98/$1 on Monday, data from the FMDQ indicated.

Year-to-date, the local currency has depreciated by 68.46 percent (N315.60) to N776.60/$1 from N461/$1 quoted at the beginning of the year.

Willing buyers and willing sellers maintained bids at N799.90/$1 high and N720.00 low, while the daily foreign exchange market turnover closed at $71.01 million on Tuesday.

At the money market, the Nigerian treasury bills secondary market closed on a mildly negative note on Tuesday, with the average yield across the curve increasing by 1 basis point to 7.17 percent from 7.16 percent on the previous day, according to a report by FSDH Research.

Average yield across the long-term maturities expanded by 9 bps. However, the average yields across short-term and medium-term maturities closed flat at 3.05 percent and 6.16 percent, respectively. The treasury bill for July 11, 2024 (+9 bps) maturity bill witnessed selling pressure.