Naira Value Falls Again Against US Dollar as NNPC’s $3bn Loan Deal Delay Leaves CBN Helpless
- The Nigerian currency has experienced a reversal in its recent gains, losing more value against the dollar
- Naira's poor performance was recorded in the official and unofficial foreign exchange markets
- The CBN had high hopes of obtaining funds from the $3bn agreement secured by NNPC with Afreximbank, but the deal is stalling
Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
The naira recorded a poor trading day against the top foreign currencies at the official and black segments of the foreign exchange (FX) markets on Thursday, August 31, 2023.
This comes as there are growing concerns that the much-celebrated $3 billion emergency loan from the African Export-Import Bank(Afreximbank) continues to drag on.
Source: Getty Images
Afreximbank cannot close the deal except for investors who were supposed to make up the loan balance give a go-ahead.
DailyTrust reports that the investors have developed cold feet over Nigeria's worsening finances and apparent desperation to defend the naira.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Legit.ng had reported that the $3 billion loan agreed by the Nigerian National Petroleum Company Limited (NNPC) was to help the Central Bank of Nigeria (CBN) stabilise the naira.
Naira to dollar exchange rate
As the deal continues to drag, the pressure of forex demand continues to affect the value of the naira in all forex markets.
At the official market, data from FMDQ securities shows that the naira closing exchange rate at the investors and exporters window was N762.71/$1 on Thursday, August 31, 2023.
This represents a massive drop in value compared to the N738.18/$1 it closed on Wednesday.
Also, in the black market, the domestic currency depreciated against the Dollar yesterday by N5 to sell at N920/$1 compared with the previous trading day’s N915/$1.
However, Naira performed well against the dollar in the Peer-to-Peer (P2P) window on Thursday as it gained N2 to sell for N918/$1, in contrast to Wednesday’s closing price of N920/$1.
Investigator probes CBN staff, NIBBS, NSPMC as bank’s personnel loans hit N40 billion
Legit.ng earlier reported that tensions are rising in the financial system as the administration of President Bola Tinubu resolves to bring to book those found culpable in the past nine years at the Central Bank of Nigeria (CBN).
The President appointed Jim Obazee on July 28, 2023, as a special Investigator of the CBN and related entities.
Source: Legit.ng
