N1,600/$1: New Exchange Rate As Naira Crashes Against US Dollar
- All eyes on the CBN as the value of Nigerian currency crashes again in the official and unofficial foreign exchange markets
- Latest data shows that the naira depreciated by 0.86% in the official market but was stable in the black market
- The fall of the naira will come as a big concern for the CBN despite recent intervention in the forex markets
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira has depreciated against the United States dollar in the official foreign exchange market despite the Central Bank's recent intervention, as it is getting closer to N1,600/$.
Data from FMDQ securities showed that the naira fell in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,577.29/$1 on Monday, July 15.
Source: Getty Images
Monday’s exchange rate is 0.86% or N28.34 depreciation compared to last Friday’s closing price of N1,563.80/$1.
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The latest fall of the naira comes despite an improvement in forex supply into the foreign exchange markets.
At the official market, the value of FX transactions improved by 21.4% or $27.03 million to $153.53 million from the $126.50 million posted in the last trading session.
Naira to pound, euro new exchange rate
The CBN of the naira witnessed a further decline against the pound sterling in the spot market during the session by N16.95, which settled at N2,034.74/£1 versus N2,017.79/£1.
The naira also depreciated against the euro in the official market by N11.73 to sell for N1,709.87/€1 versus N1,698.14/€1.
Similarly, the Nigerian currency declined in the unofficial black market.
Traders told Legit.ng that the naira fell to N1,570/$1 compared to the previous session’s rate of N1,560/$1.
ABCON is ready to help
Speaking on the performance of the naira and ongoing efforts to make BDC activities more transparent, Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria, told Legit.ng that efforts are being made to ensure BDCs are not a conduit for money laundering.
He said:
"At the ABCON leadership level, we are resolute despite the challenges, to continue to upgrade our processes, transparency, and compliance with Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) measures, and to maintain customer and public confidence."
CBN stops BDC funding
Earlier, Legit.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.
The move aims to test 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.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
