Naira Exchange Rate Against US Dollar Rises Above N700 at Official Market After CBN's Devaluation
- Naira continues to depreciate as the Central Bank of Nigeria intensifies its efforts to unify the multiple exchange rates
- Checks show the naira lost more than 5% of its value to depreciate to N702/$1 at the official Investor and Exporter window
- Despite the depreciation, the official exchange rate remains approximately N70 cheaper than the black market rate, compared to the previous gap of more than 200
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Nigeria's currency, the naira, has continued its free-fall against the US dollar across all forex markets following the Central Bank of Nigeria (CBN)'s plans to harmonise multiple exchange rates.
Legit.ng had earlier reported that the apex bank unveiled plans to unify all official segments of the foreign exchange (FX) market by collapsing them into the Investors & Exporters window.
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Traders and customers reacted to this development on Thursday, June 16, leading to the naira losing N36.15 or 5.8% against the U.S. Dollar in the official market.
Data obtained from FMDQ exchange securities, where the naira is officially traded, shows that Nigerian currency was quoted at a new low of N702.19/$1 at the end of trading compared to the initial session's rate of N664.04/$1.
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Also, the data shows a reduction in the value of forex transactions at the window on Thursday to $70.74 million compared to the previous day of over $100 million.
Naira's performance at the unofficial market
Despite the current efforts by the CBN, the unofficial markets are still thriving. However, the rates quoted are now almost similar to the official market.
For the parallel market, also known as the black market, checks by Legit.ng show that the US dollar was sold at N754/$1.
This indicates that the naira declined by N1 when compared to the previous day's exchange rate of N753 to a dollar.
Also, checks on the peer-to-peer market, where most crypto and online shoppers buy and sell dollars, like Binance and Legit.ng, observed that the naira was exchanged for the U.S. Dollar at N772/$1. This indicates a decline of N4 compared to the previous day's rate of N768/$1.
Aliko Dangote loses over N1.4trn in hours after CBN naira decision
Meanwhile, in another report, Nigerian billionaire Aliko Dangote's wealth has experienced a significant decline of N1.4 trillion following the devaluation of the naira
The devaluation was triggered by CBN's move to unify the country's multiple exchange rate system
Most of Dangote's investments, which are linked to his wealth, are based in Nigeria, and the performance of the naira directly affects his wealth
Source: Legit.ng
