Donald Trump: Naira Crashes to Lowest Level Against US Dollar in Official Market

by · Legit.ng News · Join
  • The value of the Nigerian currency has crashed to its lowest level against the US dollar in the foreign exchange markets
  • The latest exchange rate comes on the back of Donald Trump winning the US election to become the 47th president
  • Naira will have to be supported by the CBN as the sentiment around the dollar among investors is high

CHECK OUT: Don't let unemployment hold you back. Start your digital marketing journey today.

The Nigerian naira fell to its lowest level in history against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market) on Wednesday, November 6, 2024.

Data obtained by Legit.ng from FMDQ securities, where naira is officially traded, showed that the Nigerian currency closed at N1,681.65 per dollar on Wednesday.

Naira's free fall continues against US dollar Photo credit: Benson IbeabuchiSource: Getty Images

This represents a 0.61% loss for the naira compared to N1,671.32 per dollar it closed on Tuesday.

Dollar Rises Against Pound, Euro After Trump's Victory, Naira FallsThe value of the United States dollar reached a new high against major foreign currencies following the triumph of Donald Trump as the next US president.by  Dave Ibemere, 06 Nov 2024

The fall of the naira to a record low comes as forex supply to the market drops to $196.7 million on Wednesday from $218 million the previous day.

So far in November, the average forex turnover is around $147 million per day, highlighting the pressure the naira is facing.

The story was the same for the naira in the black market as it fell by N5 against the US dollar to exchange at N1,735 on Wednesday compared to Tuesday's rate of N1,730.

Here is how the naira performed against other currencies:

  • GBP Rate - N2,260
  • EURO Rate - N1,864
  • CAD Rate - N1,268
  • YUAN Rate - N240

Dollar gets stronger

Donald Trump's election victory helped the dollar rise to its strongest level on Wednesday in recent months.

Dollar Supply in Forex Market Hits $5.4 Billion as Naira Trades at New RatesData from the foreign exchange market shows that despite the naira's fall, the forex turnover in October rose to $5.4 billion from $3.31 billion in Septemberby  Pascal Oparada, 05 Nov 2024

The dollar not only crushed the naira but also against the pound euro, among others.

There seems to be a positive sentiment that Trump will introduce various policies that will help investors get better returns on savings and investments in dollars.

Fitch rates naira performance in FX markets

Earlier, Legit.ng reported that Fitch Ratings has expressed caution about the stability of Nigeria's foreign exchange market despite CBN's several assurances.

The agency believes that the Central Bank of Nigeria and other efforts have yet to yield a positive result.

There is a glimmer of hope for CBN as Nigeria’s gross foreign exchange reserves rose to $39 billion in October.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.