New Exchange Rate As Naira Crashes Against Dollar in All FX Markets After CBN’s Decision
- The value of Nigerian currency depreciated again against the dollar but appreciated against the euro and pound
- Data from official and unofficial market sources shows the naira extending a weakening cycle against the dollar that started in the previous week
- The latest exchange rate data comes amid reports that the Central Bank of Nigeria has stopped funding BDCs
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 naira has again performed poorly in the official and unofficial foreign exchange markets against the US dollar.
In the official market, known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from FMDQ Securities indicates that the naira fell to N1,490.20 against the US dollar on Monday, June 24, 2024.
Source: Getty Images
The closing rate on Monday represents a N4.67 or 0.31 depreciation of the naira compared to the previous day's closing rate of N1,485.53/$1 on Friday, June 21.
The pressure on the naira was evident, as during intraday trading at the NAFEM window, some participants, including banks and companies, exchanged the dollar for as much as N1,505.
On Monday, June 25, the total forex transactions stood at $152 million.
Naira exchange rate against euro, pound
Unlike the dollar, however, the naira fared differently against the British pound sterling and the euro in the official market.
The CBN data showed that the naira appreciated against the pound sterling by N12.57 to trade at N1,871.52/£1 compared to last Friday's rate of N1,884.09/£1.
It also improved its value against the euro in the same space by N38.27 to quote at N1,552.97/€1, in contrast to the previous day of N1,591.24/€1.
In the black market, A BDC trader, Abdulahhi, revealed that the naira crashed past N1,510.
"Yes, the naira value dropped. Remember, I mentioned that we source dollars from the street. If there is more demand, we will sell at a higher price.
"On Monday, we sold at N1,510, depending on the buyer and the quantity of dollars needed. We buy from customers at N1,480."
CBN stops BDC funding
Earlier, Legit.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.
The move aims to test the CBN's reform template and minimise quick fixes in the FX market.
The CBN is reportedly reviewing significant policies to strengthen the implementation or tweak its reforms.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
