New Exchange Rate As Naira Crashes Further Against US Dollar
- The value of Nigerian currency will be starting the new week at a low against the dollar in the official market
- Data shows that the naira depreciated against the United States dollar, British Pound and also the euro
- The latest exchange rate data comes despite intervention by the Central Bank of Nigeria to crash the dollar rate
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, continued its downward slide against the US dollar despite the Central Bank of Nigeria (CBN) efforts to stabilize the currency.
In the official market, known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed the week on Friday, July 19, at N1,596/$1.
Source: Getty Images
Last week's closing rate represents a 1.92% or N30.10 loss of naira compared to the previous day's rate of 1,596.92/$1 compared with the previous session’s session of N1,566.82/$1.
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The fall of the naira comes despite efforts by the CBN to help the naira recover in value in the FX markets.
In its latest move, Legit.ng reported that the CBN injected $106.5 million into the foreign exchange market in two days to enhance liquidity and ease FX demand pressure.
The apex bank disclosed this in a circular signed by Omototla Duke, Director of Financial Markets Departments at the CBN.
The circular explained that the funds were sold to authorized dealer banks and licensed Bureau de Change (BDCs) between Thursday, July 19 and Friday, July 20.
The apex bank also promised to continue injecting liquidity into various segments of the official markets.
Naira rate to euro, pound
Unlike the dollar, however, the naira fared differently against the British pound sterling and the euro in the official market.
According to CBN data, the naira appreciated against the Pound Sterling in the official market during the session, gaining N15.19 to close at N2,048.77/£1 compared to N2,063.96/£1 the previous day.
Against the euro, the naira also strengthened by N7.32, ending the day at N1,725.91/€1, up from N1,733.23/€1.
In contrast to its performance against the dollar, the Nigerian naira showed varying movements against the British pound sterling and the euro in the official market.
According to data from the CBN, the naira appreciated against the pound sterling, gaining N15.19 to close at N2,048.77 per pound compared to N2,063.96 the previous day.
Similarly, against the euro, the naira strengthened by N7.32, finishing the session at N1,725.91 per euro, up from N1,733.23
In the black market, A BDC trader, Abdulahhi, revealed that the naira also improved against the dollar.
"Yes, the naira value improved. The CBN's recent sales of the dollar increased forex supply, and we have to be careful on how we fix our rates.
"On Friday we sold one dollar at N1,580/$1 compared with the previous day’s value of N1,635/$1."
CBN predicts naira to dollar exchange rate
Earlier, Legit.ng reported that the CBN has asked Nigerians to expect the value of the Nigerian currency to improve in the coming months.
The apex bank said increasing domestic crude oil production and exports will enhance the naira's vanaira'se CBN is determined to find a solution to the depreciation of the naira and recently conducted another round of forex sales.
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Source: Legit.ng
