CBN Updates All Exchange Rates As Naira Crashes Against Dollar As Banks React to Hunger Protests

• Nigerian currency, the naira, has again depreciated against the dollar in the foreign exchange markets
• The ongoing nationwide protest against hunger affected economic activities, with many financial institutions branches closed
• There is hope for naira recovery as CBN reintroduced a strategic intervention through a Retail Dutch Auction System (DAS).

Naira has again recorded another poor performance against the US dollar in the official and unofficial foreign exchange markets.

At the official market, known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from FMDQ Securities indicates that the naira depreciated to N1,617.08/$1 against the US dollar at the end of trading on Friday, August 2, 2024.

The closing rate on Friday was a massive loss of 3% or N47.08 for the naira when the rate is compared to the previous day’s closing rate of N1,570.;

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CBN crashes dollar for importers after naira appreciates against USD in official, parallel markets

The pressure on the naira was evident as nationwide protests under the EndBadGovernance campaign escalated to violence, death, and arrests in some parts of the country, forcing banks to close branches.

Naira exchange rate against euro, pound

It was, however, a mixed story for the naira against the British pound sterling and the euro in the official market.

The CBN data showed that the Nigerian currency appreciated against the pound sterling by N17.61 to N2,051.50/£1, in contrast to Thursday’s closing price of N2,069.11/£1.

The naira weakened against the euro by N18.33 during the session to settle at N1,729.89/€1 compared with the previous day’s value of N1,748.22/€1.

In the black market, A BDC trader, Abdulahhi, revealed that the naira lost N10 of its value.

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Naira lost over 150/$ against British Pound as CBN gives new exchange rate

"The naira depreciated in value again. We sold the dollar at N1,605/$1, compared with the previous closing price of N1,595/$1.

"Many Nigerians looking to travel and unable to obtain dollars from banks came to us to buy."

CBN introduces ‘new’ system to crash the dollar

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) announced plans to begin the Retail Dutch Auction System (rDAS).

The bank asked all dealer banks to provide it with legitimate forex demands with which to conduct the transactions.

The apex bank disclosed that it is reintroducing the system due to banks’ growing demand for Forex.

Source: Legit.ng