Traders Quote New Exchange Rate As Naira Crashes Again Against US Dollar After CBN’s Decision
- Naira's value has dropped again against the dollar in the official market despite CBN intervention
- New data shows that the naira also depreciated against the United States dollar in the black market
- The latest exchange rate data comes following the Central Bank of Nigeria's decision to increase interest rates again
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, has depreciated again against US dollar in the foreign exchange market despite the Central Bank of Nigeria (CBN) efforts to stabilise it.
In the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed on Wednesday, July 24, at N1,586.71/$1.
Source: Getty Images
Tuesday's closing rate represents a 2.45% or N37.95 loss of naira compared to the previous day's rate of N1,548.76/$1.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
The fall of the naira was mainly driven by pressure on the foreign exchange market despite the CBN's recent auction with official dealers and the Bureau de Change (BDCs).
Data from the FMDQ securities exchange shows that the value of forex transactions in the official market depreciated by 39.1% or $109.89 million to $171.03 million from the $280.92 million recorded on Tuesday.
Naira's performance in the other market
According to data from the CBN, the naira closed at the same rate against the pound sterling and the euro at the official market on Wednesday, at N1,991.77/£1 and N1,673.02/€1, respectively.
At the black market, traders told Legit.ng that the naira also depreciated against the dollar.
Musa, a BDC trader said that the naira sold at N1,590/$1 on Wednesday.
He said:
"The naira depreciated by N5 against the United States dollar compared to Tuesday's closing price of N1,585/$1.
"Yes, the CBN has resumed sales to BDCs, but it is only to a selected few. I still sell from what I am able to source on my own."
CBN predicts naira exchange rate
Earlier, Legit.ng reported that the CBN 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 would enhance the naira's value.
CBN is determined to find a solution to the depreciation of the naira and recently conducted another round of forex sales.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
