The exchange rate between the naira and dollar closed N1,537/$1 on Christmas eve gaining one naira from the prior day close of N1,538/$1.
This ensures the official exchange rate will go into Christmas at its lowest level in history surpassing the N885.88/$1 exchange rate recorded on the 22nd of December 2023 (the previous worst in history).
The currency has thus weakened by a whopping 42% in one year amid several macro-economic headwinds experienced during the year.
What the data is saying
Data from the central bank exchange rate portal shows the naira closed at N1,537/$1 on Tuesday as businesses closed earlier ahead of the Christmas celebration.
- The intra-day high and low recorded during the day were N1545 and N1533 to the dollar respectively compared to N1545 and N1532 recorded a day earlier.
- Meanwhile, the NFEM rate for the day closed at N1538.57/$1 compared to N1535/$1 recorded a day earlier while the simple average rate was N1539/$1 compared to N1537/$1 a day earlier.
- The central bank is yet to start publishing volumes of forex traded during the day.
The exchange rate has appreciated by 8% month to date since the central bank introduced the new foreign exchange trading mechanism EFEMS.
Meanwhile, on the parallel market where the exchange rate is bought and sold unofficially the exchange rate averaged between N1650 and N1655 to the dollar.
The exchange rate on the parallel market has stabilized in recent days following the volatility that was experienced earlier in the month when it fell above the N1700 rate against the dollar.
