Naira Crashes Again Against US Dollar, CBN Gives New Exchange Rate
- Concerns are growing for the Central Bank of Nigeria (CBN) as the value of the Nigerian currency continues to decline in both official and unofficial foreign exchange markets
- New data shows that the naira depreciated by 1.08% in the official market and by N5 in the black market
- The latest exchange rate for the naira against the United States dollar is at its lowest level in the last four months
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.
After another depreciation, the Nigerian currency is now at its worst exchange rate level in four months at the official market.
In the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed on Thursday, July 26, at N1,603.80/$1.
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The new exchange represents a 1.08% or N17.09 loss of naira compared to the previous day's rate of N1,586.71/$1.
The poor performance of the naira is again caused by a foreign exchange (FX) liquidity squeeze despite efforts by the Central Bank of Nigeria (CBN) to intervene in the market.
Data from the FMDQ securities exchange shows that the value of forex transactions in the official market went down by 23.4% or $39.94 million to $131.09 million from the previous day's rate of $171.03 million.
CBN gives pound, euro exchange rate
It was a similar story for the naira against the pound sterling and the euro in the official market.
The CBN reports that the naira witnessed against the pound sterling in the official market during the session by N70.65 to settle at N2,062.42/£1 compared with the previous year's N1,991.77/£1.
Meanwhile, the naira lost N63.16 against the euro to trade at N1,736.68/€1 versus N1,673.02/€1.
Naira to dollar in black market
In the official market, also known as the black market or parallel market, the value of the Nigerian currency also dropped.
Traders who spoke to Legit.ng said that the naira depreciated by N5 against the United States dollar to exchange at N1,595/$1, compared with the N1,590/$1 it closed on Wednesday.
CBN offers hope for naira
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.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
