Exchange rate hits N900/$1 as dollar scarcity persists

The exchange rate between the Nigerian naira and the US dollar has reached N900/$1 on the black market, according to recent quotes received by NaijNaira.

This represents a significant depreciation from the rate of N840/$1 just last week. The decline in the exchange rate suggests a rise in demand for dollars as supply challenges persist.

In an effort to address the depreciation, the Tinubu administration has expressed its commitment to tackling the issue, with support from the central bank.

The government has also announced that the Nigerian National Petroleum Corporation (NNPC) has secured a $3.5 billion loan to boost supply.

Despite these measures, analysts remain concerned about the depreciation of the naira, and the exact cause behind it is still unclear. Some operators attribute the slide to mounting demand pressures and unresolved supply issues.

The central bank has also announced plans to reintegrate Bureau de Change (BDC) operators into the forex market, which is seen as a step towards improving liquidity at the retail level.

Meanwhile, trading on the official Investors and Exporters (I&E) window saw the exchange rate settle at N770/$1, with a turnover of $122 million.

The currency tracking platform AbokiFX has also reported the exchange rate at N900/$1.