CBN Updates British Pound, Dollar Rate as Naira Crashes After Banks, Others Shut Down for 48 hours
- The Central Bank of Nigeria has released new data showing that on Wednesday, June 19, the naira fell versus the British pound
- In relation to the dollar, the naira concluded at N479.31/$, from the N1474.09/$ it closed the trading at the previous week
- This occurred after the banks and other businesses paused economic activities for 48 hours in observation of the Eid break
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
New data by the Central Bank of Nigeria indicates that the naira lost against the British Pound on Wednesday, June 19.
Source: Getty Images
According to data the local currency against the British Pound closed at N1883.45/£. This means it lost N13.57/£ from the N1869.88/£ it last closed last week.
However, the naira closed at N1479.31/$ against the dollar indicating a a flat change from the N1474.09/$ it closed the trade the previous week.
Legit.ng earlier reported that Nigerian banks, including Access Bank, Zenith Bank, and United Bank for Africa, earlier announced the closure of their branches on Monday, 17, and Tuesday, June 18, 2024.
In a notice sent to customers, the banks explained that the closure is in observance of the public holiday, the 2024 Eid celebration.
Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said that the major issue takes us (Nigeria) back to main cause of problem; what is our position when we consider today FX inflows and losses outflows.
He said,
"The only thing for our dear naira will lie in improved location production, increased trade activities, better business environment to encourage FDIs amongst other policies."
New hope for naira
Recall that the Central Bank of Nigeria (CBN) recently announced the injection of a $2.9 billion deposit into a special account.
The deposit is aimed at stabilising the foreign exchange market and boosting the value of the naira.
Financial analysts said the naira could see a boost beginning this week, given the federal government's plan to utilise the $2.25 billion World Bank loan granted to Nigeria.
The $2.25 billion loan is primarily intended to help Nigeria implement economic reforms that have led to the biggest cost-of-living crisis in a long time by bolstering revenue.
The first project, expected to receive $1.5 billion, is the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing.
A $750 milerating resource mobilisation lion funding proposal has been made for the second project, NG Accel Reforms Programme-for-Results.
World Bank speaks on supplying dollar to Nigeria
Legit.ng reported that according to the World Bank, it can now provide Nigeria's economy with over $15 billion in financial and technical assistance.
The foreign lender made this announcement on Friday in a feature piece titled "Turning the Corner: Nigeria's Ongoing Path of Economic Reforms" on its website.
The bank disclosed that it has made investments in water and sanitation, governance reforms, resilience to climate change, women's economic development, girls' education, and renewable energy and reliable power.
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Source: Legit.ng
