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New Exchange Rate As Naira Depreciates Against US Dollar in All Forex Markets
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New Exchange Rate As Naira Depreciates Against US Dollar in All Forex Markets

by  Dave Ibemere 2 min read
  • The value of the naira dropped for the first time in three days against the US dollar in the forex markets
  • Data shows that the Nigerian currency recorded a slight depreciation in the official and unofficial markets
  • The new EFEM system introduced by the Central Bank of Nigeria has been one of the main reasons for the turnaround

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The naira has dropped in value against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market).

Data obtained from CBN showed that the Nigerian currency is now N1,552/$1 after trading on Monday, December 9, 2024.

Naira's value drops after performing strongly against the US dollar for days.
The naira falls against the US dollar in the official market Photo credit: Bloomberg/contributor
Source: Getty Images

The exchange rate on Monday showed a slight depreciation from the previous day's rate of N1,535 per dollar.

The naira's fall occurred despite an improvement in the supply of forex to the spot market during the session.

According to data from the FMDQ Securities Exchange, Monday's turnover was a 35.9%, or $62.83 million, drop from the $175.15 million recorded last Friday to $112.32 million.

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BDC operators react as traders predict N1,400/$ this week

In the black market, naira also weakened against the dollar by N40 to quote at N1,620/$1, in contrast to the previous trading day’s value of N1,580/$1.

CBN's latest naira vs other foreign currencies

  • Pounds Sterling (GBP): N1,961.93
  • Euro (EUR): N1,623.84
  • Swiss Franc (CHF): N1,746.93
  • CFA Franc (CFA): N2.47
  • Saudi Riyal (SAR): N408.38
  • Danish Krona (DKK): N217.71
  • Chinese Yuan (CNY): N211.34
  • South African Rand (ZAR): N86.22

Factors driving naira exchange rate?

Meanwhile, Aminu Gwadabe, president of the Association of Bureaux de Change Operators of Nigeria, explained the naira's current performance in an exclusive chat with Legit.ng.

He attributed the rise in the naira's value to three key factors: renewed confidence from portfolio investors in Nigeria's economy, the beneficial impact of the CBN's Electronic Foreign Exchange Management System (EFEMS) launch, and increased diaspora remittance inflows coupled with reduced demand for dollars

Reno Omokri reacts as naira strengthens

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Again, traders crash dollar exchange rate as naira appreciates

Earlier, Legit.ng reported Reno Omokr's reaction to the naira's strong performance in the foreign exchange market.

The former presidential aide claimed that some Nigerians were not happy with the appreciation of the naira.

He further noted that some were hoping and praying that the appreciation of the naira would not last.

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

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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