Naira Crashes Again Against Dollar, Pound, Euro in All FX Markets, Traders Quote New Exchange Rates

• The Nigerian currency continued its depreciation against the US dollar in the foreign exchange market
• The latest exchange rate data showed that the Nigerian currency fell in official and unofficial markets
• The Central Bank of Nigeria is expected to provide more liquidity in the market as foreign reserves rise

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian currency has recorded another loss against the US dollar in all foreign exchange markets.

Data from FMDQ securities shows that the naira crashed to N1485.36 on Thursday, June 20, 2024, on the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

The closing rate on Thursday represents a 0.22% or N3.34 depreciation of the naira compared to the previous day's closing rate of N1,482.02.

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The pressure on the naira was evident, as during intraday trading at the NAFEM window, some participants paid as high as N1,495 to purchase a dollar and the lowest rate during trading was N1,434.08.

On Thursday, June 20, the total forex transactions stood at $176.20 million.

Naira exchange rate against euro, pound

The CBN data also showed that the naira lost N13.57 against the British pound sterling to sell for N1,884.09/£1 compared with midweek's closing price of N1,870.52/£1.

The naira also depreciated by N15.05 against the euro, selling at N1,591.24/€1 versus the previous day's N1,576.19/€1.

In the black market, the Nigerian currency suffered a N5 loss against the US Dollar on Thursday, settling at N1,490/$1 compared with Wednesday's exchange rate of N1,485/$1.

Legit.ng contacted Aminu Gwadabe, president Association of Bureaux de Change Operators of Nigeria (ABCON), regarding the latest development on efforts to automate BDCs operations, he said:

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"We are making significant progress. Once completed, it will enhance price discovery, autonomy, reporting, market intelligence, and ease of monitoring and supervision for both regulatory and security agencies."

Nigeria's foreign reserves rise

Legit.ng earlier reported that Nigeria's foreign exchange (forex) reserves increased by $195.01 million to $32.64 billion, indicating that the market is expected to have more liquidity.

The recent accretion marked the fourth consecutive increase in foreign exchange reserves after a month of declines.

The reserves increased by $89.76 million the week before. Before this, it had increased by $10.76 million and $132.68 million.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng