Nigeria Naira Exchange Rate Plummets to N1,135/$ in Parallel Market, Raising Economic Alarms

The Nigerian Naira faced a significant challenge in the foreign exchange market as it depreciated to N1,135 per US dollar on Wednesday at the parallel market. This represents a notable N15 or 1.35 percent depreciation compared to the previous day's exchange rate of N1,120. Currency traders, particularly Bureau De Change operators (BDCs), were grappling with a highly volatile market.

On the official market, the Naira also experienced a depreciation of 0.55 percent, closing at N874.71 to a dollar on Wednesday, down from N869.91 on Tuesday. The fluctuations were evident throughout the day, with the highest price reaching N1,097.50 per dollar before eventually settling at N745 per dollar, according to data from FMDQ Securities Exchange, which oversees official foreign-exchange trading in Nigeria.

This decline in the Naira's value comes as JP Morgan, a US multinational financial services firm, had previously projected that the Naira would trade at approximately N850 to the dollar by the end of 2023.