Naira Depreciates Again Against US Dollar, Banks, Traders Quote New Exchange Rate

• The Nigerian currency, the naira, has once again recorded another poor performance in the foreign exchange markets
• Latest data from the foreign exchange markets shows that the naira came under intense pressure
• Recently, CBN governor Olayemi Cardoso, at a media event in London, promised the investing public and Nigerians that the worst was over for the naira

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, the naira, is ending the month of June 2024 the same way it started, with consecutive depreciation in the official and unofficial foreign exchange markets.

In the official market, data from FMDQ securities showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), naira closed at N1,507.83 on Wednesday, June 24.

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The rate on Wednesday indicates a 0.46% or N7.04 loss when compared to Tuesday's closing price of N1,500.79/$1.

The pressure on naira was evident on Wednesday, with participants buying dollars for as high as N1,523.

During trading on Wednesday, forex transactions increased slightly to $176.39 million from the $$136.75 million recorded in the previous day.

Naira to dollar against pound, euro

The Nigerian currency also witnessed a sharp decline against the British pound sterling and also the euro.

According to CBN data, the naira against the pound sterling in the official market is sold at N1901.94/£1 from the previous rate of N1,890.86/£1.

While against the euro, the naira weakened to sell for N1,605.6732 versus N1,598.78/€1 quoted in the preceding session.

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Naira to dollar at black market

In the parallel market, the Bureau de Change also crashed naira following the trend in the official market.

A BDC trader at Airport Road Lagos told Legit.ng that a dollar on Wednesday sold at N1,515/$1 compared to the previous rate of N1,510/$1 on Tuesday.

The same rate was confirmed by another trader Abdulahhi.

Abdulahhi noted that:

"The naira is under pressure because we now rely on the street. It is a demand and supply market. What we get is what we sell with profit in mind."

CBN governor promises worst is over

Legit.ng previously reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, promised that the worst days of the naira were over.

He disclosed in an interview that the naira had remained relatively stable due to reforms of the apex bank.

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Despite Cardoso's assurances, naira's value continues to fall in the market.

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

Source: Legit.ng