CBN, Traders Quote New Exchange Rates As Dollar Becomes Cheaper To Buy in Black Market
- The value of the Nigerian currency has depreciated further in the CBN's official foreign exchange market
- The new exchange rate shows that the naira fell by N2.11 in the official market, while the black market rate is cheaper
- Nigerians are still waiting for the impact of CBN's recent interventions in the foreign exchange market
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, continues to depreciate against the US dollar despite the Central Bank of Nigeria's (CBN) efforts to stabilize the currency.
Data from FMDQ securities shows that In the official market, known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira on Monday, July 29, exchanged at N1,611.40/$1.
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The new exchange rate indicates a fall of 0.13% or N2.11 when compared to the preceding session's closing rate of N1,609.29/$1.
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Naira rate to euro, pound
It was a similar story for the naira against the British pound sterling and the euro in the official market.
According to CBN data, the naira depreciated against the Pound Sterling in the official market on Monday by N6.85 to close at N2,068.45/£1 compared with last Friday's price of N2,061.60/£1.
The naira also weakened against the euro by 80 Kobo to settle at N1,741.61/€1, in contrast to the previous day's N1,740.81/€1.
The poor performance of the naira in the official market occurred due to pressure, despite a 6.4% increase, or $10.71 million rise, in forex turnover in the spot market on Monday, reaching $179.34 million from $168.63 million recorded in the previous trading session.
Naira at the black market
The market's weakening trajectory continued in the parallel market, also known as the black market.
Traders told Legit.ng that Nigerian currency value depreciated further to above the N1,600 exchange rate.
"Yes, the Naira fell again. We are selling one dollar for N1,605.
"Last Friday, it was N1,595. The reason for the rate remains the same: demand and available supply determine our exchange rate."
The black market rate for the dollar is still lower than the official rate.
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.
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Source: Legit.ng
