CBN Updates Pound, Euro New Exchange Rates as Naira Hit New Low against Dollar

• The CBN has revealed that the value of the naira depreciated against the pound in the official foreign exchange market
• The Nigerian currency’s poor performance against the pound is similar to the dollar rate changes in the black market
• There are expectations that the CBN will find a solution in the next monetary policy meeting for slated for July 22

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 trends.

The Central Bank of Nigeria (CBN) revealed that the naira has depreciated against the British pound and the euro in the official foreign exchange market.

In an updated exchange rate on its website, the CBN said the naira exchange rate against the pound hit N2,037.36/£1 after trading on Tuesday, July 17.

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N1,600/$1: New exchange rate as Naira crashes against US dollar

The new exchange rate indicates a N2.62 loss for the naira when compared to Monday’s rate of N2,034.74/£1.

Also, against the euro, the Nigerian currency’s value shrank by N1.62 to trade at N1,711.49/€1, in contrast to the previous day’s N1,709.87/€1.

Naira falls to dollar on black market

The situation is similar for the naira against the United States dollar in the black markets.

Legit.ng spoke to black market traders and confirmed that the dollar is now sold at N1,600 to Nigerians.

One trader, Abdullahi, said:

"We sell dollars at N1,590 to anyone who wants them from us, but buy at the exchange rate of N1,580 to N1,585.

'There are no foreign currencies available; the market is dry, so we have to use different sources to meet customers' demands."

However, it was a different story for the naira in the official Nigerian Autonomous Foreign Exchange Market (NAFEM) forex window.

Read also

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

According to data from the FMDQ Securities Exchange, the naira marginally gained 63 Kobo or 0.04% to sell for N1,576.66/$1 compared to Monday’s closing price of N1,577.29/$1.

New platforms identified as threats to naira

Earlier, Legit.ng reported that Nigerians identified the emergence of two cryptocurrency platforms as the reason for the recent fall of the naira.

The earlier decline of the naira was attributed to alleged market manipulation by Binance.

Nigerians have blamed the latest depreciation on new crypto exchange platforms, namely BYBIT and BITGET.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng