Naira Crashes Again in Official Market, BDC Traders Quote Dollar Exchange Rate
- The naira has recorded its first fall against the dollar in the official foreign exchange market for July
- However, it was a different story for the naira in the black market, as it improved in value against the dollar
- CBN Governor Olayemi Cardoso is very optimistic that the value of the naira will bounce back and has initiated several measures
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.
Nigerian currency, the naira depreciation in the official foreign exchange market, continued into July despite promises from the Central Bank of Nigeria.
In the official market, data from FMDQ securities showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), naira closed at N1,508.99/$1 on Monday, July 1, 2024.
Source: Getty Images
The rate on Monday indicated a 0.25% or N3.69 loss compared to Tuesday's closing price of N1,505.30/$1.
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The pressure on the naira was evident on the first trading day of July, as participants bought one dollar for as high as N1,536.
The total value of forex transactions on Monday stood at $122.31 million, which marked a 34.9% or $65.51 million drop from the $187.82 million recorded last Friday, June 28.
Naira to the dollar against the pound, euro
There was a euro difference in the exchange rate for the naira against the British pound sterling and the euro."
According to CBN data, the naira remained stable against the pound sterling and the euro, selling at N1,859.10/£1 compared with the previous rate of N1,573.79/€1.
Naira to dollar at black market
In the parallel market, however, Traders who spoke to Legit.ng said the naira appreciated against the dollar.
Abdulahhi, a trader, said:
"Naira gained on Monday by N15 to quote at N1,510/$1 versus the previous trading day's value of N1,525/$1."
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.
Despite Cardoso's assurances, naira's value continues to fall in the market.
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Source: Legit.ng
