Naira records a record low in the black market.

At the parallel segment of the foreign exchange market, the value of the naira has fallen to a record low.

According to Nigerian Tribune, the local currency closed at N1,415 yesterday, down from N1,365 to the US dollar on Wednesday, January 24, 2024.

Currency dealers, commonly referred to as Bureau de Change (BDC) operators, set the selling price of the US dollar at N1,410 and the buying rate at N1,400, resulting in a N10 profit margin.

The local currency closed at N900.96/US$ at the official section of the foreign exchange (FX) market on Wednesday, down from N882.24 on Tuesday and N878.61 on Tuesday.

The naira saw a high of N1,313 and a low of N700, according to FMDQ Exchange, a platform that regulates official foreign exchange trading in Nigeria.

Reacting to the development, economic analysts say they expect the naira to remain pressured across FX segments due to CBN’s constrained capacity to significantly boost supply. Some business owners, importers and manufacturers have clearly expressed their concern over the non-availability of FX.

The development comes after Olayemi Cardoso, governor of the Central Bank of (CBN), said the naira is currently undervalued.

According to Cardoso, there are expectations of stability in the foreign exchange market for 2024 that can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN. This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage. The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.

“We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years, “ he stated at a forum on Wednesday.