Naira Records Mixed Trading, Depreciates Against Dollar, Increase in Value Against British Pounds and Euro
- Nigerian currency, the Naira, continues to lose its value against the United States dollar across all foreign exchange markets
- At the official market, the naira has dropped in value to a low of N772.82 per dollar, while at the unofficial market, it is above N850/$
- The Central Bank of Nigeria is expected to intervene in the forex market anytime soon before it gets worse
The Nigerian Naira will be starting the new week weakened against the foreign currencies across the official Investors and Exporters (I&E) and also the unofficial windows of the foreign exchange (FX) market.
At the official market, I&E window, data obtained from FMDQ securities shows that the value of the naira depreciated against the Dollar to N772.82 a dollar on Friday, June 28, 2023.
Source: Getty Images
Friday's rate represents a 1.26 per cent or N4.66 drop in value for naira against the dollar when compared to N768.16/$.
The fall of the naira at the official window comes as demand for forex jump by 37.4 per cent or $21.77 million to $79.99 million on Friday compared with the $58.22 million on Thursday.
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Dr Muda Yusuf the Chief Executive Officer, the Centre for the Promotion of Private Enterprise (CPEE) in an exclusive interview with Legit.ng called on the Central Bank of Nigeria to interrogate forex demand at the official market.
Naira rate at the black market
At the unofficial market the increase in demand was also evident as forex shortages means the dollar was priced at a premium.
Traders in the parallel market exchanged naira against the dollar at N860/$1 a N5 depreciation when compared to Thursday’s closing price of N855/$1.
However it was different story for the Naira in the Peer-to-Peer (P2P) segment mostly used by cryptocurrency traders.
Checks by Legit.ng shows that Naira gained N1 against the US dollar to sell at N849.00/$1 compared with the previous day’s value of N850.00/$1.
Naira exchange rate to Euro, Pounds
According to data from the Central Bank of Nigeria naira improved in performance against the Pound Sterling in the official market on Friday by N4.67 to sell at N990.52/£1 compared with the previous rate of N995.19/£1.
While against the Euro, it also increased in value by N6.08 to trade at N856.92/€1, in contrast to Thursday’s rate of N863.00/€1.
CBN faces another headache as Nigeria’s foreign reserves fall to 2-year low
Meanwhile in another report, Legit.ng revealed that Nigeria's foreign reserves is now at a two year low.
The latest data from the CBN shows that Nigeria's reserves drop to $33 billion amid reduced earnings from crude oil sales.
The foreign reserves is a key firepower for CBN in its fight to ensure naira stay strong against other currencies.
Source: Legit.ng
