Nigerian naira hits record black market low of 1,100 per dollar

[Rruchi man]

~

It is a terrible time for the low income earners. The economy will be terrible on them because a rise in exchange rate affects the cost of basic commodities in the market, almost everything is affected and some basic things start becoming unaffordable. This economic difficulty can be traced to unqualified leaders occupying and making bad financial decisions and economic policies.

An election was just conducted in the country from where new leaders have come into power. We should not be experiencing this because the new leaders ought to be showing how much better they are than the last administration, but we are witnessing the direct opposite, things are becoming tougher.

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[Nwada001]

Can it be possible for it to ever come down to ₦150?

I don't see that happening anytime soon, even in the coming 5 years. I also don't also see any possibility of achieving that infect. I increased my expectations to 10 years as a challenge. We can't see this rate again even in the decay to come. One thing about this country to start with: let's keep the fundamentals that are behind the cause of this increase. When the price of something goes all up, it's hard for you to see that thing back down to where it was initially.

If No, then people in that country will be encourage to buy more dollars for holding so that they will take the advantages of it in the future even though it will affect their economy because things has started to rise and if naira continue to rise against dollar then that's how things will continue too.

This is the only choice that we are left with currently because we can't even predict what the rate will be in the coming days considering the speed that it's using to climb all of the 4 hours. It has moved from $1 for N1100 to $1 for N1153, which is very annoying.
 
One thing that's given me so much concern is that if we have the knowledge and ideas of making use of foreign means of saving and conversion, which makes us a little safer from this value depreciation, what's the faith of the civil servants and the market women who are undergoing day-to-day trading and don't have such knowledge?

[Fortify]

Nigeria's naira hit a record low of 1,100 per dollar on the black market on Wednesday, online platform abokiFX showed, a day after the currency hit a new low on the official market due to persistent dollar shortages.

The naira has been in freefall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market.

Unfortunately Africa is a continent that faces perpetual problems, it is mainly stymied by corruption because strong institutions and justice systems take years to build but can be crippled in a short period by greedy, self interested politics. If I recall correctly Nigeria is the most prosperous nation in Africa, which is partially attained just through having the largest population. It takes generations to turn a country around and make it more productive, but that can also be hindered by neighboring countries for different reasons. The transportation network across Africa is fragile, both by road and fragmented railways, but that can often be a precursor to creating cheap and efficient trade.

[ZAINmalik75]

The economy of Nigeria is currently on a live support machine, the economy is in dire need of respiration. Exporters are finding the situation not funny as they cannot get a good return in investment after bringing in goods into the country in hard currency, because inflation is on the high side, and local retailers purchasing power is weak. Nigeria is an oil producing state, just like Qatar and other oil nations that are doing well, so why is Nigeria own different.

Just a point here that you should note that Qatar is no doubt a source of oil, but its economy does not only depend on the oil as they have also diversified their investments, and their ways of earning money are also not based on oil products. While Nigeria, I think, totally depends on oil revenues, it does not have tourism popularity like Qatar.

The disasters of the economy not only depend on the oil imports and exports, but they also depend on the type of leader and the level of corruption happening at the governmental level. By all means, I can say that there is less corruption in Qatar and more in Nigeria.

And talking about countries in oil other than Qatar, they mostly have different policies, expenditures, and the level of security provided to foreigners either in the field of tourism or getting investments from them. When more investors come into the country, the economy grows, but bad cases do the opposite. Overall, I hope Nigeria will recover its stable economic state soon.

[Antotena]

I get heartache every time I see the current exchange rate for the naira. It is a huge challenge for us Nigerians because the way the dollar is rising while the naira is falling indicates that the economy of Nigeria is collapsing. Both the government and we as the citizens must work together to ensure the success of our great country as the giant of Africa.

Nigeria economy isn't collapsing rather it's weak because we are too dependent on dollar to do anything in the country. We don't have much dollar as reserve, infact even the government has debt to settle which are in dollars, the government need dollars to pay debts and citizens also need dollar for schools payment abroad, importation of all kinds materials and goods including refined crude oil.

What baffle me about this dollar to naira brouhaha is that the Euro to naira has been the same, it's not growing like the way dollar is going up. We need to place our priority if we want the dollar to stabilize against naira because this is not even the right time to allow dollar to increase against naira because dollar is growing against almost all the currencies in other countries as well.

[DrBeer]

It's a dire situation for the currency and its holders.

It has been calling for the last decade now, from as low as N150 to $1 to N450 and then N750 climbing up to N1000, but the rate of collapse has never been this rapid. It usually bounces around with periods of increase and decrease in value, but now it's one-way traffic.

A lot has to be done for the economy to revive it and create some demand for the currency.

I was not aware of the rates of the Naira/USD pair. Well, I am amazed and shocked to see how volatile your stable currency has become. I mean, it is moving like BTC. Our local currency, Pkr/USD, is around 278, and it has decreased in the past few days because the government suddenly came to know that they should do something otherwise the economy would collapse, and they started different operations against those who were holding black money in dollars.

And they recovered $900 million from the locals and also did many other operations to stop the robbery of gas, electricity, and water. And it also helped us minimize the PKR/dollar pair rate.

Well, I mentioned these because why don't your governments take such steps where they can control the rates? Well, we also take some loans too, but I don't know anything about Nigeria's economy, so I think I should look into it. But thanks for giving a historical overview of how things are going there.

As practice shows, the biggest problem of the economy is not “the population’s reserves in dollars.” The main problem is corrupt government, theft, the principle “ours are everything, strangers are nothing”... The fact that someone has set aside 100-1000-10000 dollars for themselves is not a problem, the problem is when they steal millions, when they give lucrative contracts and resources to their companies - "gaskets", and the money will be taken out in huge sums outside the country. So “shaking the wallets of citizens” who are trying to create a “financial cushion” for themselves is not the best solution, moreover, it is ineffective. No matter how much money the population has in their hands, this money will not be enough to stabilize the economy if theft and corruption continue

[Faisal2202]

As practice shows, the biggest problem of the economy is not “the population’s reserves in dollars.” The main problem is corrupt government, theft, the principle “ours are everything, strangers are nothing”... The fact that someone has set aside 100-1000-10000 dollars for themselves is not a problem, the problem is when they steal millions, when they give lucrative contracts and resources to their companies - "gaskets", and the money will be taken out in huge sums outside the country. So “shaking the wallets of citizens” who are trying to create a “financial cushion” for themselves is not the best solution, moreover, it is ineffective. No matter how much money the population has in their hands, this money will not be enough to stabilize the economy if theft and corruption continue

You are right, if the leaders are not honest and devoted to their motherland, then they fuck there motherland and make babies (money) sorry for such words, but we are also too exhaustive of our leaders too, they took to many loans from foreign countries, for development purposes and many other purposes, but none of them came to the finalization. This means all of them are still ongoing and also not completed. You might find 3 or 4 posts of me, on my local board, where we discussed those programs.

Well, the point is so clear here, which is, that we developing countries are being tested by these corrupt leaders, who at first make big promises and then after getting into power consider themselves up from all the law and become god.

Citizens (middle class) are the ones who are paying the prices now.

[KiaKia]

Every currencies are highly facing inflation, 1 million dollars in 1985 is like have 30 million dollars today, even the dollar is facing the same fate but the dollar is a very valuable currency over Naira so yes people will see it as a safe haven to avoid inflation.

Nigeria is in a big mess and I don't the devaluation will ever stop, we aren't far from 1,500 to $1 anymore and with the way things are going it seems unstoppable.

The one's who are to be blame are the leaders and the people, Nigeria is filled with people who are ready to support the evil people if the evil people are the ones supporting them financially, Nigerians will do anything for money, there is no right from wrong anymore so I believe how the country as turned out to be is because of the people who can't say no to dirty money.

The leaders are playing a bigger role in the mess of a country and the people are also a part of it.

[boltz]

Unfortunately the entire world is facing financial problems but Africa is having way worse problems than Europe per example. Right now , I don't see any salvation for Africa to be honest because they have too many corrupted people that really don't want anything good to happen with people from that country or with Africa in general.

I also won't be surprised if Nigerian naira will hit even lower rates by the end of the year because inflation and corruption won't go away over night.

[KingsDen]

Nigeria's naira hit a record low of 1,100 per dollar on the black market on Wednesday, online platform abokiFX showed, a day after the currency hit a new low on the official market due to persistent dollar shortages.

The naira has been in freefall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market.source

This is not a good news for Nigerians in Nigeria as the level of inflation is outrageous in the country. The naira is losing its buying power on a faster lane and the effect is telling on Nigerian citizens who save in naira. It is nice to let us understand that Nigerians were deceived for more than 35 years to devalue her currency (naira) and the effect is what we are seeing now.

Nigerians are suffering high level of inflation because of the exchange rate which has increased the cost of goods coming into the country and secondly because of the increment of PMS caused by the removal of fuel subsidy.

Unfortunately the entire world is facing financial problems but Africa is having way worse problems than Europe per example. Right now , I don't see any salvation for Africa to be honest because they have too many corrupted people that really don't want anything good to happen with people from that country or with Africa in general.

I also won't be surprised if Nigerian naira will hit even lower rates by the end of the year because inflation and corruption won't go away over night.

Yes, you have rightly said that the world is facing global inflation but that of Africa (Nigeria) in particular is on a faster lane because of bad leadership and corruption.

[Don Pedro Dinero]

What baffle me about this dollar to naira brouhaha is that the Euro to naira has been the same, it's not growing like the way dollar is going up.

Well, that is because the dollar is still used as a safe haven currency in times of crisis, and in the face of international instability it is the most sought-after currency. I don't know what period of time you are referring to but the euro has clearly been losing purchasing power against the dollar since 2008, with ups and downs obviously. But it is not accurate to say that it goes up. Regarding your local currency you see it going up, but the reality is that the purchasing power of the dollar also falls, which falls much less than your currency, and by comparison you see it going up.

[johnsaributua]

It makes one wonder, what will be the steepest drop below N1000 to N100? Hopefully not.!
If converted to the currency in my country also feels so steep, yes the dollar is that strong, until the supply continues to be difficult to stem.
I hope the naira can move again even though it may not be measurable yet, maybe next month or next week, until it is not too much food to enter the black market according to its proper function and public channels.

[hugeblack]

I cannot imagine how the local currency could be reduced from 1,100 to 1,250 in one day. What would the lives of middle-class individuals be like, especially since salaries and jobs do not directly interact with the continuous decline in the local currency, and it may take a year or two before they are adjusted. Frankly, I do not have detailed information about Nigeria, but there must be an economic failure for the exchange rate to move from 150 to 1250. It is good that there is activity in the LB here.

[DrBeer]

As practice shows, the biggest problem of the economy is not “the population’s reserves in dollars.” The main problem is corrupt government, theft, the principle “ours are everything, strangers are nothing”... The fact that someone has set aside 100-1000-10000 dollars for themselves is not a problem, the problem is when they steal millions, when they give lucrative contracts and resources to their companies - "gaskets", and the money will be taken out in huge sums outside the country. So “shaking the wallets of citizens” who are trying to create a “financial cushion” for themselves is not the best solution, moreover, it is ineffective. No matter how much money the population has in their hands, this money will not be enough to stabilize the economy if theft and corruption continue

You are right, if the leaders are not honest and devoted to their motherland, then they fuck there motherland and make babies (money) sorry for such words, but we are also too exhaustive of our leaders too, they took to many loans from foreign countries, for development purposes and many other purposes, but none of them came to the finalization. This means all of them are still ongoing and also not completed. You might find 3 or 4 posts of me, on my local board, where we discussed those programs.

Well, the point is so clear here, which is, that we developing countries are being tested by these corrupt leaders, who at first make big promises and then after getting into power consider themselves up from all the law and become god.

Citizens (middle class) are the ones who are paying the prices now.

There is another nuance here... The power in the country is not the president or the head of a military group. The country belongs to the people. And if the government to which you have entrusted management does not cope with the tasks, you have every right to demand that they leave their chairs and resign from their positions. Otherwise, they will again promise to “fix everything”, invent “the culprits”, and .. continue to steal, take out loans, which will also be stolen, and who will pay for this whole “celebration of life”? That's right - the POPULATION of the country. And as long as the population votes for populists and fabulous promises, the situation will not change, but will only get worse. Therefore, it is necessary to ask questions of the authorities, and demand either to fulfill the obligations taken or leave your post

[kryptqnick]

It's really sad when the government is incapable of doing their basic job, such as keeping the fiat stable. I've seen so many threads by wonderful Nigerians on this forum, threads that show that there are bright entrepreneurial minds there who are pro-Bitcoin and ready to give a boost to their economy with their ideas, but the government clearly cares little about such potential and about ensuring that people can flourish. I suppose the already popular Bitcoin is likely to get even more popular now because Bitcoin has been doing pretty well lately, and it's certainly not in free-fall.

[BIT-BENDER]

This is so sad. And now from the last time I checked one US dollar is about 1,160 naira. This is now becoming an embarrassment and at this rate the Nigerian currency would become very worthless.

The naira has always been very bad for a very long time but this has to be it worse case as before it would have some bit of stability for a while but right now it's devaluing everyday. I think the government don't know how to tackle the situation and that's what you get from bad government

[panganib999]

A bleak situation for Nigerians indeed. If things presses on we might see another Zimbabwean Dollar in the making (which I hope doesn't happen) since Naira doesn't really have a good reason to rise or recover in value anytime soon. It's not like they are profiting from all the resources that they have for one (which I really hope they take action upon cause for Pete's sake it was theirs and they are pretty much letting anyone with a fat pocket take it away from them), and they are basically the e-waste central of the African Continent.

I've witnessed some of the smartest people I know of come from Nigeria, it shouldn't be hard for the government to realize how massively amazing the Nigerians are. It's sad they're throwing all of this away in favor of their personal gains.

[wxa7115]

It's a dire situation for the currency and its holders.

It has been calling for the last decade now, from as low as N150 to $1 to N450 and then N750 climbing up to N1000, but the rate of collapse has never been this rapid. It usually bounces around with periods of increase and decrease in value, but now it's a one-way traffic.

A lot has to be done on the economy to revive that and create some demand for the currency.

Can it be possible for it to ever come down to ₦150?
 
If No, then people in that country will be encourage to buy more dollars for holding so that they will take the advantages of it in the future even though it will affect their economy because things has started to rise and if naira continue to rise against dollar then that's how things will continue too.

Once money has been printed it does not disappear from the supply, so a return to those levels is not possible, the best those living at Nigeria can expect is for things to not get any worse and the current rate to last years or decades.

But we know this is not going to happen, as when things get this bad governments instead of accepting their mistakes they decide to keep in the same direction hoping for things to magically fix themselves, and when they do not then they blame the population for not being patriotic enough to hold their local currency and allow themselves to be robbed by the inflation created by all that money that has been printed by the government.

[Poker Player]

Unfortunately, that's probably why we have a great Nigerian community on the forum, because the situation with their currency is so bad that Nigerians are looking for their way out with bitcoin, cryptocurrencies and whatever they can.

Once money has been printed it does not disappear from the supply, so a return to those levels is not possible, the best those living at Nigeria can expect is for things to not get any worse and the current rate to last years or decades.

I don't know if you are referring only to Nigeria or in general, but in general it is possible to make some of the printed money disappear, this is what is known as quantitative tightening.

[yhiaali3]

I don't know much about the Nigerian economy, but there are certain reasons and wrong economic policies that lead to such a continuous decline of the Nigerian naira against the US dollar.

I am not surprised because here in my country the same thing happens. The stupid and disgusting economic policies of the government lead to the continued deterioration of the national currency against the dollar. It has now reached 14,000 national currencies for $1 and the decline will not stop, of course.

Although, as far as I know, economic resources exist in Nigeria, I expect that the government's wrong economic policies, in addition to government corruption, are the reason.