Following a positive start to the year 2023, the Nigerian currency, Naira, has recorded its first loss to the US dollar in the official market.
The Naira opened the year at N461.00/$1 on Tuesday, January 3, 2023, the first trading day of 2023.
This is an increase from the previous close of N461.50/$1 in the Investors and Exporters (I&E) segment of the foreign exchange market in 2022.
However, on Wednesday, 4 January 2022, the Naira reversed its gains from the previous day to record its first loss for 2023.
According to FMDQ Securities Exchange data, the Naira depreciated by 0.15% as the dollar was quoted at N461.67 against the previous close of N461.00.
The naira’s weakness followed a low level of market activity, with daily foreign exchange market turnover falling 54.82 percent to $69.33 million on Wednesday, down from $153.45 million on Tuesday.
The majority of currency dealers who took part in the FX auction on Wednesday kept their bids between N440.00 and N462.00 per dollar.
On the black market, traders revealed that the Naira was exchanged at N745/$1 on Tuesday, 3 January 2023, compared to N736/$1 on Tuesday, 3 January 2023.
In response to the Naira-dollar exchange rate, political economist Prof Pat Utomi stated that if the federal government’s fiscal and economic policies do not take “dramatic” measures, the naira-dollar exchange rate may rise above $1 to N1,000.
Utomi stated this on Channels Television’s Politics Today program on Wednesday, 5 January 2023, according to Leadership.