Dollar Crashes to New Exchange Rate in Official, Black Markets
- The value of the naira recorded an appreciation against the US dollar in the foreign exchange markets
- The new exchange rate in the official market is a N0.6 appreciation, while in the black market dollar crashes by N20
- Yemi Cardoso, the Central Bank of Nigeria, has expressed confidence in its reforms and said Nigeria’s economic trajectory is turning positive
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.
Nigerian currency has appreciated against the US dollar in the official and unofficial foreign exchange markets.
In the official market, data from the Central Bank of Nigeria showed that the naira's value rose on Friday, April 25, to N1,599.42 per dollar.
Source: Getty Images
Friday's exchange rate is a 0.22% or N3.59 improvement in value compared to N1,603.01/$1 it was traded in the previous session.
Naira against pound, euro
Similarly, the naira improved against the euro, but fell against the British pound in the official exchange market.
The Nigerian currency also improved its value against the Euro in the official market by N1.36 to close at N1,818.53/€1 compared with Thursday’s closing price of N1,819.89/€1.
While against the Pound Sterling in the same market segment on Friday, the naira depreciated by N1.90 to close the session at N2,130.44/£1 versus the preceding session’s rate of N2,128.50/£1.
Source: Getty Images
Snapshot of the naira's exchange rates in the official market
Based on CBN data, here is the latest exchange rate of the naira against major foreign currencies as of Friday.
- CFA: N2.78
- Yuan/renminbi: N219.43
- Danish krona: N243.54
- Euro: N1818.53
- Yen: N11.12
- Riyal: N426.39
- South African rand: N85.04
- Swiss franc: N1926.24
- Pounds sterling: N2130.44
- US dollar: N1599.55
Naira in black market
In the parallel market, also known as the black market, the naira improved against the US dollar.
Traders who spoke to Legit.ng confirmed that the dollar, which sold for N1,620 at the start of last week, has crashed.
Abudulahi, one of the traders, said:
"The dollar has depreciated and might fall below N1,600 soon. On Friday, we sold at N1,602/$1, compared to N1,620 at the start of the week.
"Meanwhile, the euro and pound selling rates closed at N1,800 and N2,110 respectively"
Meanwhile, the CBN has praised its polices, noting that the Nigerian economy is beginning to turn the corner with an increased investor confidence, growing reserves and macroeconomic stability.
BusinessDay reports that Cardoso emphasised the Bank’s commitment to reforms and ensuring stability and transparency in the FX market.
CBN's attempts to strengthen the naira
Regardless of Chatham House's arguments, the CBN, led by Governor Olayemi Cardoso, has taken several steps to stabilise the naira, though the results have been mixed.
To restore the currency’s value, the CBN has issued various policies and directives. One key move was tightening regulations on Bureau de Change (BDC) operators, introducing new rules to control their activities.
Banks were also given instructions on how to manage the sale of dollars to customers to reduce unnecessary demand.
In 2024, the CBN introduced the Electronic Foreign Exchange Matching System to improve market transparency and help stabilise the naira.
Other measures include stricter monetary policies, clearing outstanding forex debts, and cracking down on those manipulating the currency market.
However, the naira remains under pressure due to high inflation, strong demand for dollars, and low foreign reserves.
There are also indications that Cardoso's policy reforms have led to a more stable naira in recent months.
Earlier, Indermit Gill, the World Bank Vice President and Chief Economist, commended the CBN governor, Olayemi Cardoso, for his approach to managing inflation and the foreign exchange rate.
CBN slashes customs exchange rate
Earlier, Legit.ng reported that CBN has made adjustments to the Customs exchange rate used by importers to clear goods at ports.
The new exchange rate reflects a slight reduction from the previous figure, following the improvement of the naira...
The Customs rate is pegged against the performance of the naira in the official NAFEX window against the dollar.
Article updated with additional information by head of business desk Victor Enengedi
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Source: Legit.ng
