Naira’s Value Falls Across All Foreign Exchange Markets As CBN Finally Gives Banks Directives on Old Notes
- The value of the naira crashed against the US dollar across foreign exchange markets
- Naira fell to the dollar in the official market by 0.04% and also shed N2 of its value in the unofficial market
- The CBN has given a directive to banks to accept, and pay in old 1,000, 500, and 200 naira notes
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Naira on Monday, 12 March 2023, depreciated against the US dollar at the official and unofficial foreign exchange (FX) markets, as the Central Bank of Nigeria finally directs banks to accept old notes.
The Naira's poor performance against the US dollar in the parallel market, Peer-to-Peer (P2P), and Investors and Exporters (I&E) window(the official market).
Data from FMDQ securities where the naira is officially traded showed that its value declined by 17 Kobo or 0.04 percent against the dollar to settle at N461.67/$1 on Monday, compared with the previous exchange rate of N461.50/$1.
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Naira value at unofficial market
At the P2P segment, traders exchanged their local currency for the American currency at an average rate of N754/$1 on Monday, March 13, compared to the previous rate of N752/$1, indicating a decline of N2.
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It was a similar situation in the black market, where the local currency lost N2 against the US currency to settle at N746/$1, in contrast to N744/$1 it traded on Friday, March 10.
In the interbank segment of the market, CBN data showed that the Naira also witnessed a drop in value against the Pound Sterling by N9.48 to exchange at N557.49/£1 from N548.01/£1.
It was the same against the Euro, Naira lost N5.48 to close at N492.59/£1 from the previous rate of N487.11/£1.
CBN obeys Supreme Court
Meanwhile, the Central bank of Nigeria has finally obeyed the Supreme Court judgment on old naira notes.
CBN in a circular signed by its spokesman Isa AbdulMumin noted that it met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
CBN spends N58.61billion to print 2.518 billion Naira notes
In another report, Legit.ng disclosed that the Central Bank of Nigeria has revealed it spent N58.61 billion printing Naira notes for circulation in the country.
According to CBN, 2.51 billion pieces of banknotes of various denominations were printed to satisfy the currency needs of the economy
The amount spent in 2020 for printing is a significant drop compared to what CBN spent in 2019 and 2018.
Source: Legit.ng
