Naira Trades at N759 Per Dollar, Closes at N770/$ on I&E Window as Devaluation Takes Effect
- The Naira appreciated marginal at the black on Monday, June 19, 2023, to trade at N759 per dollar
- The Nigerian currency witnessed a 0.26 per cent appreciation in comparison to the previous day’s trading
- The development comes as Nigeria announced the devaluation of the Naira to close the gap in the foreign exchange market
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The Naira traded at N759 per dollar on the black market on Monday, June 19, 2023, appreciating by 0.26% compared to the previous day’s trading session of N757 per dollar.
According to reports by BDC operators, the Naira witnessed a marginal appreciation against the British pound, trading at about N946 to a pound.
Source: UGC
Naira witnesses marginal appreciation on the black market
The appreciation indicates an increase of 0.63% compared to the previous day’s trading session, where it traded at N952 against the pound.
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Also, the Naira witnessed a significant increase of 0.62% against the Euro to trade at an average exchange rate of N805 per Euro on June 19, 2023, in contrast with the previous day’s trading session, where it traded at N810 per pound.
The fluctuation of the Naira is natural in the face of global currency volatility caused by economic indicators and market sentiments.
Nigeria aims to unify the exchange rate market
The current exchange follows the devaluation of Nigeria’s currency which experts say is poised to cause inflation.
Last week, the Central Bank of Nigeria (CBN) issued a circular to commercial banks to trade forex ‘freely’ with the willing buyer, willing seller model.
The move is aimed at unifying the country’s chaotic multiple exchange rates.
A few days after the CBN announcement, the bank readjusted the exchange rate to N589.45 per dollar against the N664 in which it previously devalued the currency.
How the Naira traded against major currencies
- Naira/Dollar (NGN/USD)
- Buy rate – N750/$1
- Sell rate – N755/$1
- Naira/Pound (NGN/GBP)
- Buy rate – N930/£1
- Sell rate – N946/£1
- Naira/Euro (NGN/EUR)
- Buy rate – N795/€1
- Sell rate – N805/€1
Meanwhile, Nigeria’s legal tender, the naira, closed at N770 per dollar at the investors and exporters (I&E) window on Monday, beginning the week on a fragile front as the recent central bank reforms take effect on the market.
According to FMDQ Securities Exchange Limited, the Monday closing rate represents a 16.1 percent depreciation from the N663 recorded on the last trading day (Friday).
TheCable reports that despite the naira’s weak performance, data on FMDQ shows that investors traded about $78 million deals on the I&E window.
The currency is yet to gain stability following changes implemented by the federal government in Nigeria’s foreign exchange (FX) market.
CBN unifies the exchange rates as the naira falls in the official market to N775 per dollar
Legit.ng reported that according to a statement by the apex bank on Wednesday, June 14, 2023, all forex transactions shall now be done through the Investors and Exporters (I&E) window, thereby abolishing the country's parallel and other forex markets.
The CBN also made a raft of changes in the operation of the forex market and trading in Nigeria, and the bank's Director of Financial Markets, Angela Sere-Ejembi, signed the statement.
The development comes as the apex bank seeks to unify all exchange rates in Nigeria in line with the promise of President Bola Tinubu.
Source: Legit.ng
