Naira Against Dollar Hits N767, Falls Heavily Against Euro, Pound Ahead of 2023 General Election
- The Nigerian Naira recorded mixed trading against the US Dollar, Euro, and Pound Sterling in the foreign exchange markets
- Data showed that the Naira exchanged at N767 to a dollar on the black market but appreciated in the official market
- The instability of the naira is coming ahead of the upcoming 2023 general election on Saturday, February 23
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On Tuesday, 21 February 2023, the Naira recorded an increase in value against the US Dollar in the black currency market.
Street traders confirmed it gained N3 and ended up at a rate of N767/$1, a noticeable improvement from the previous day's rate of N770/$1.
This positive trend was also observed in the Investors and Exporters (I&E) section of the foreign exchange (FX) market.
Source: Getty Images
FMDQ securities report that the Naira gained 17 Kobo or 0.04% against the dollar to close at N461.33/$1 compared with the earlier session’s rate of N461.50/$1
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The Naira's improvement in the exchange rate against the dollar can be attributed to an increase in forex supply.
A total of $48.28 million was exchanged among participants, which is 19.8% or $8.00 million higher than the amount of $40.28 million that was recorded the previous day.
Naira depreciates at other foreign exchange markets
However, the story changed for the Naira against the dollar at the foreign exchange market's Peer-to-Peer (P2P) arm.
P2P is a market most used by fintechs to attend to the dollar demands of their customers.
Legit.ng gathered that the Nigerian currency depreciated against its American counterpart at the P2P during Tuesday's trading session by N1 to close at N769/$1, in contrast to Monday, February 20 value of N768/$1.
Naira exchange rate to British pound, Euro
Another market where the Naira witnessed heavy beatings was the interbank market.
The interbank foreign exchange (FX) market is decentralised, where banks and other financial institutions trade currencies. This market allows banks to buy and sell currencies to meet the needs of their clients.
After Tuesday, trading data from the CBN shows that the Pound Sterling and the Euro were stronger against the Naira.
The Naira weakened by N7.71 against the British currency, closing at N557.82/£1 compared to the previous rate of N550.11/£1.
Similarly, the Naira lost N1.40 against the Euro to sell at N491.07/€1, compared to Monday's closing rate of N489.67/€1.
On the black market, Naira rates report that one pound exchanges at N914.526 while the Euro sells at N812.380 to a dollar.
Naira falls as expert predicts N1000 to one dollar exchange rate
Meanwhile, in another report, Legit.ng disclosed that Naira recorded its first loss in the foreign exchange market for 2023.
The Nigerian currency drop in value was recorded across official and black market foreign exchange markets.
Naira experienced significant losses in 2022, and experts have shared their predictions for 2023.
Source: Legit.ng
