Naira Trades at New Rates against Pound, Euro After Crashing against US Dollar
- The Nigerian currency reacted differently to different foreign currencies in the parallel and official markets
- The naira traded at N2,070 to the British pound and N1,580 to the euro, respectively
- The naira also crashed in the official market on Friday, July 19, 2024, trading at N1,596 to a dollar
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
On Sunday, July 21, 2024, the Nigerian currency, the naira, experienced a mixed performance in the foreign exchange market, with varying rates at the parallel and official markets.
According to Bureau de Change (BDC) operators in the parallel market, traders bought the euro and pound and sold at N1,570 and N1,580 to the dollar, respectively.
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The naira reacts to the pound and euro
The naira also traded N2,020 and N2,070 to the pound and N1,650 and N1,700 to the euro.
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Meanwhile, the Nigerian currency, the naira, crashed to the lowest against the US dollar in the official market on Friday, July 19, 2024.
The naira crashes against the dollar
Data from the FMDQ Exchange showed that traders quoted the dollar at N1,596 to a dollar instead of the N1,565 it traded the day before.
The naira’s official spot rate stood at a high of N1619 and a low of N1,496 to a dollar.
The foreign exchange market recorded a turnover of $250.67 million, an improvement from the previous day’s record.
CBN sells FX to BDCs
The development comes as the Central Bank of Nigeria resumed forex sales to Bureau de Change (BDC) operators.
The Central Bank of Nigeria (CBN) conducted another round of dollar sales to licensed Bureau De Change (BDC) operators.
According to the CBN, the move ensures liquidity in the retail market's demand for eligible invisible transactions.
According to a new circular released on Thursday, July 18, the apex bank is ready to sell $20,000 to licensed BDC operators at N1,450 per US dollar.
The rate is N131.65 cheaper than the official exchange rate, which closed at N1,581.65 on Wednesday, July 17, 2024.
According to a new circular released on Thursday, July 18, the apex bank is ready to sell $20,000 to licensed BDC operators at N1,450 per US dollar.
The rate is N131.65 cheaper than the official exchange rate, which closed at N1,581.65 on Wednesday, July 17, 2024.
Experts believe that the latest round of FX sales to BDCs will boost the naira's performance and reduce demand for the US dollar.
"The FX sales is what Forex operators have been clamoring for since March. They believe the performance of the naira is strongly hinged on the interventions of the Central Bank of Nigeria," Ishaya Ibrahim, financial analyst and journalist said.
He disclosed that the sales will impact imports, especially petroleum products imports and other variables.
"The issue now remains that of sustaining the momentum with the BDCs, CBN should adopt a month or b1-monthly FX sales to BDC if it cannot sustain weekly sales due to low FX supply."
The naira recovers against the dollar
Legit.n earlier reported that the naira made a marginal recovery against the US dollar on Tuesday, July 16, 2024, after plummeting near N1,600 to a dollar on Monday, July 15, 2024.
Traders quoted the official dollar exchange rate at N1,576.66, up from the N1,577 it traded the day before.
Currency dealers quoted the dollar at a high of N1,592 to a dollar and a low of N1,492.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
