Traders Quote New Rates as Naira Strengthens Against British Pound, Euro

• The Nigerian currency, the naira, declined against the British pound for most of August from 2,094.83 per pound to N2,82.09.
• Also, the naira recovered against the US dollar on Friday, August 22, 2024, in the exchange rate market
• The development comes as Nigerian businesses said in a recent survey that they expect the dollar to depreciate more in 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, experienced a slight gain against the British pound, which peaked in over two years following the Federal Reserve’s indication to cut interest rates in September.

Meanwhile, FMDQ data revealed that the local currency rose against the dollar to N1,570 per dollar, improving from N1,586.1 per dollar, as recorded on Thursday, August 22, 2024.

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Naira recovers in the black market

The Nigerian currency also recovered in the black market as its value increased from N1,620 per dollar to N1,615.

In August, the Central Bank of Nigeria (CBN) boosted its efforts to reduce the naira’s volatility in the foreign exchange market.

The CBN's efforts contributed to the naira’s marginal recovery against the dollar, which hit a new low in 2024 due to a statement by the Federal Reserve.

Businesses expect a further crash

The naira began rising after hitting N1,912 per dollar in late February. It fell below N1,000 in April and fell again to N1,585 per dollar.

According to a recent survey by the CBN, Nigerian businesses anticipate further weakening of the naira before it will strengthen in late 2024 or early 2025.

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Access, others sell dollars at cheaper rate as naira gains in official market, falls in black market

The survey says that most businesses remain hopeful despite concerns about the immediate future of the naira.

The dollar crashes against other currencies

Reports show that the euro reached a 13-month high due to the dollar's weakening after the USD fell to a 17-day low against the yen.

Meanwhile, the British pound gained about 0.94% to $1.32.11 by late Friday evening, surpassing the 2023 high of $1,31.44, reaching $1.32.22, the highest level since late March 2022.

The Nigerian currency, the naira, declined against the British pound for most of August from 2,094.83 per pound to N2,82.09.

The euro ended the day appreciating by 0.75% at $1.1195 after hitting a high of $1.120.15 on Friday afternoon.

Naira bounces back against US dollar

Legit.ng previously reported that the Nigerian currency, the naira, appreciated against the US dollar in the official market after the Central Bank of Nigeria (CBN) updated its FX trading reports.

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N1,592/$1: CBN updates new exchange rate for dollar, pound, euro

According to the apex bank, the naira depreciated against the British pound but improved against the dollar and the euro in the official foreign exchange market.

In an updated exchange rate on its website, the CBN said the naira exchange rate against the pound fell marginally to N2,035/£1 after trading on Friday, August 16, 2024.

Source: Legit.ng