N1,561/$: Naira Depreciates Again Against US Dollar, Traders Quote New Exchange Rate

• The Nigerian currency, the naira, continued its free fall against the dollar in the foreign exchange market
• The latest exchange rate is due to the naira coming under intense pressure from market participants
• The same poor performance was recorded for the naira in the unofficial foreign exchange markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trend.

The value of the Nigerian currency, the naira, continues to depreciate against the US dollar in both the official and unofficial forex markets.

According to data from the FMDQ Securities Exchange, the naira crashed in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,561.98/$1 on Wednesday, July 10, its lowest level since March 2024.

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Naira reverses gain, falls by N71.91 in 24 hours against US dollar, traders give new exchange rate

Wednesday’s new rate represents a 1.92% or N29.70 depreciation compared with the previous day’s rate of N1,532.28/$1.

The naira depreciation was due to intense forex demand in the market. This was evident as participants in the NAFEM window priced the dollar as high as N1,585.

By the end of the day, the total transactions executed on Wednesday stood at 236.70 million, a 25.8% or $48.51 million increase from the preceding session’s $188.19 million.

Naira to dollar rate at black market

Meanwhile, traders told Legit.ng in the black market that the naira also depreciated against the dollar.

Abdulahii a BDC trader told Legit.ng

We sold the naira at N1,550/$1, a N10 depreciation compared to the previous day’s rate of N1,540/$1. It is likely that the naira will appreciate, but it depends on the CBN."

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Experts open up on what to expect as CBN makes fresh dollar sale to currency trader

FX reserves rises

Data from the Central Bank of Nigeria (CBN) shows that Nigeria’s external reserves have reached a new high, exceeding $35 billion.

This is the first time under President Bola Tinubu that Nigeria’s reserves have risen since March 2023.

There is an expectation that with higher reserves, the CBN will have enough to defend the naira from further depreciation.

CBN stops BDC funding

Earlier, Legit.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.

The move aims to test CBN’s reform template and minimise quick fixes in the FX market.

The CBN is reportedly reviewing significant policies to strengthen the implementation or tweak its reforms.

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

Source: Legit.ng