As bear pressure increases, the Nigerian naira has passed a new threshold. The rate of exchange, which closed yesterday at N464 at the window for investors and exporters, was printed at N463.47 per US dollar in the afternoon.
The imbalance between increasing demand and lesser supply for foreign currency drove the rate to a level unfavorable to local producers. And the currency rate at the National Autonomous Foreign currency Fixing (NAFEX) dropped to N465.
Naira fell on all FX transactions as analysts predicted poor near-term performance.The FX rate is projected to cross N500 in 2023 without suitable reforms that drive foreign inflows into the Nigerian economy. Like local counterparts, a slew of foreign interests maintains the stance that Naira is overvalued in the official window.
