The Nigerian naira experienced on Thursday a noteworthy depreciation, reaching a historic low of 1,105 against the U.S. dollar on the official market. This marked a substantial decline from its closing rate of 830 naira to the dollar on the preceding Wednesday, as indicated by data from the London Stock Exchange Group (LSEG).
The factors influencing the decline of the naira on the official market were not readily apparent, necessitating further analysis to ascertain the driving forces behind this noteworthy depreciation.
Additionally, the currency of Africa’s largest economy has been consistently setting new record lows on the parallel market, where it operates with greater flexibility. This trend is attributed to surplus demand on the official market, leading to a redirection of this excess demand towards the parallel market.